Asian IPOs set for blockbuster week as ‘Animal Spirits’ return
Around 20 companies from Asia Pacific are listing shares next week in deals that may raise as much as $8.3 billion, the biggest weekly volume since April 2022, according to data compiled by Bloomberg. The heavy supply includes deals from China, India and Japan, underscoring the broad revival in share sales across the region.
“There is a level of animal spirits returning to the Asia market,” said Matthew Emsley, a partner at Herbert Smith Freehills LLP in Hong Kong who works on IPOs, using a popular term for changes in market behavior that are often driven by emotions. “There’s an increased level of activity and urgency to take advantage of that positivity.”
The performance of the newly listed shares will be keenly watched by bankers planning to bring a spree of equity offerings in Asia over the next few weeks, as companies and major shareholders attempt to close deals before the Nov. 5 election in the US.
The deals will also offer insight into investor demand in the longer term following years of weakness due to lackluster markets. Bottled-water maker China Resources Beverage Holdings Co. and autonomous-driving technology firm Horizon Robotics Inc. are set to debut in Hong Kong on Wednesday and Thursday, respectively, raising more than $1.3 billion between them. Their success may spark a broader revival of Chinese share sales in Hong Kong, once a busy – and lucrative – segment of the IPO market.
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