Econ
Vietnam named among Asia Pacific's top 5 in capital raising
Vietnam has been ranked fourth among Asia Pacific countries in capital raising from initial public offering (IPO), according to the global law firm Baker McKenzie.
Following China, India, Japan, issuers from Vietnam have raised US$2.3 billion from domestic listings, informed Baker McKenzi in its latest report "North America Capital Raising Drive Cross-Border IPOs".
The report cited the IPO of HDBank in Vietnam as a highlight in listing activities, which is considered the second largest deal in Vietnamese banking sector history.
Last January, HDBank listed more than 980 million shares on the Ho Chi Minh City Stock Exchange (HOSE). With the initial offering price of VND33,000 (US$1.76) per share, HDBank is valued at VND 32.4 trillion (or US$1.43 billion), thus becoming one of 20 largest companies on HOSE.
Overall, geopolitical uncertainty and market volatility have been behind a slide in overall IPO value in Asia Pacific's markets in the first half of 2018, standing at US$31.9 billion, down 21% year-on-year, while 400 deals were recorded, a fall of 31%.
The declines are replicated across both the domestic and cross-border markets with domestic value falling 22% to US$26 billion and volume down 34% at 360, while cross-border value fell 12% to US$5.6 billion and volume holding at 40.
Despite the drop in activity, the Asia Pacific cross-border index grew by over 21% to 15.9 as the share of cross-border listings in the region increased to 18%, from 16% in first half of 2017 in terms of value and to 10%, from 7% in the first half of 2017 in terms of volume.
According to the report, the region has still managed to retain its place as the most active.
"In Asia-Pacific, deal flow could improve as market reforms may facilitate greater cross-border listings in Asia-Pacific," said David Holland, Asia Pacific Chair, Capital Markets of Baker McKenzie.
"Examples include the Hong Kong Stock Exchange's reforms to allow dual share structures, which should help it attract companies that would otherwise list in the US, and the introduction of depository receipts to allow Chinese citizens to invest in international companies."
Vietnam is seen as a highlight in listing activities. Source: Baker McKenzie.
|
Last January, HDBank listed more than 980 million shares on the Ho Chi Minh City Stock Exchange (HOSE). With the initial offering price of VND33,000 (US$1.76) per share, HDBank is valued at VND 32.4 trillion (or US$1.43 billion), thus becoming one of 20 largest companies on HOSE.
Overall, geopolitical uncertainty and market volatility have been behind a slide in overall IPO value in Asia Pacific's markets in the first half of 2018, standing at US$31.9 billion, down 21% year-on-year, while 400 deals were recorded, a fall of 31%.
The declines are replicated across both the domestic and cross-border markets with domestic value falling 22% to US$26 billion and volume down 34% at 360, while cross-border value fell 12% to US$5.6 billion and volume holding at 40.
Despite the drop in activity, the Asia Pacific cross-border index grew by over 21% to 15.9 as the share of cross-border listings in the region increased to 18%, from 16% in first half of 2017 in terms of value and to 10%, from 7% in the first half of 2017 in terms of volume.
According to the report, the region has still managed to retain its place as the most active.
"In Asia-Pacific, deal flow could improve as market reforms may facilitate greater cross-border listings in Asia-Pacific," said David Holland, Asia Pacific Chair, Capital Markets of Baker McKenzie.
"Examples include the Hong Kong Stock Exchange's reforms to allow dual share structures, which should help it attract companies that would otherwise list in the US, and the introduction of depository receipts to allow Chinese citizens to invest in international companies."
