IPO value down 35% in Asia

The first eight months of the year show a drop in IPO value in Asia and the US, compared to a 200% rise in Europe.

Initial public offerings in Asia ex-Japan during the first eight months of 2013 fell 35 percent year-on-year to $17.3 billion, according to data from Thomson Reuters.

US IPO value during the same period dropped 10 percent to $27.8 billion, but listings in Europe rose 204 percent to reach $14.4 billion, the data shows.

In Asia, Australia and Japan led the region with gains of 349 percent ($1 billion) and 310 percent ($7.8 billion) respectively. 

China and India were the weakest, though India showed a 4 percent gain to $300 million across 32 deals.

In China, where new listings have been frozen since October 2012, IPO value was $4.5 billion, representing a 71 percent drop year-on-year, according to the data.

China froze new listing applications last fall in order to reform the IPO system, which had been marred by fraud. 

According to local media reports, China’s IPO markets could remain closed throughout 2013 because the IPO regulatory reforms are still in need of adjustments and improvements.

IPOs (January 1 – August 29)

   Value US$bn    Number    % change 
Asia (ex-Japan)     $17.3  182  -35%
Japan   $7.8   30   310%
 US   $27.8  118  -10%
 Europe   $14.4  70    204%

% change in value is from same period the previous year
Source: Thomson Reuters