AUSTRALIA ’ S RECORD IPO YEAR
“ People keep having these good experiences [ in Australia ], they keep looking for the next opportunity to invest in ,” said Andrew Stevens .
year ’ s IPO activity as the biggest for Australia in nearly 20 years .
“ People keep having these good experiences , they keep looking for the next opportunity to invest in ,” said Andrew Stevens , joint head of equity capital markets at UBS . UBS has managed the floats of Spotless and Genworth Mortgage Insurance Australia Ltd , which at the halfway point of the year were the country ’ s biggest . As mentioned previously , Hoyts has also hired the firm to advise on their IPO journey as well .
“ Rather than being a bubble , the rush of IPO activity is due to a cocktail of previously withheld supply and the quality of businesses that are on offer ,” summarized John McLean , the head of capital markets origination at Citi in Sydney . “ I don ’ t think it ’ s too good to be true ... We ’ ve had fairly subdued levels for a number of years , other than the second half of last year .
Other countries within the Asia- Pacific region are having less than stellar years , allowing Australia to really shine . Dozens of deals have been cancelled or withdrawn completed due to volatile equity markets , unrest in Thailand and a hesitation to approvals in China .
“ Australia has become a bit of a highlight regionally ,” said McLean after agreeing that IPO activity in broader Asia has remained somewhat subdued due to the variety of factors .
Equity markets in mainland China reopened this year after a 14-month hiatus . Initial expectations for a boom in China IPOs were high , and the increased activity in Hong Kong is still expected to boost listings in the region . However , expectations have since been scaled back as regulators have been tentative about approvals . IPOs in Singapore so far this year have had a slow start . Since Thailand ’ s military launched a coup , volumes have plunged .
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