(Bloomberg) — The latest U.S. listings by Chinese firms
were rattled amid last week’s trade tensions, with two of three
deals getting downsized. Headline risk will clearly remain an
issue for these IPOs, which take more than a week to price after
an offering range is set. But heightened trade fears still
aren’t enough to stifle the surge of cross-border listings from
China.
* “I think the pipeline we see right now in China is enormous
and I don’t think that’s going to stop any time soon,” Gene Song
said in an interview with Bloomberg. Song this month joined
Alpine Global Management as its global head of ECM. He was most
recently head of institutional equity sales at Citi.
* “Maybe there’s some deal fatigue with China,” he said. “But
when you look at cycles like this, they’re not 1-2 year cycles,
they’re 5-10 year cycles.”
* Over the past year, the rate of Chinese firms announcing U.S.
listings plans has more than doubled. Successful IPOs over the
past year have risen 18% on average, outperforming all other
U.S. listings.
* Pinduoduo, last week’s largest IPO by a Chinese firm at
$1.63b, managed to price at the top of its range despite the
rising trade fears and has risen by 17% in the aftermarket.
* Also watch Iqiyi this week, this year’s largest U.S. IPO by a
Chinese company and one of the best performing. The video
platform reports its 2Q results on Tuesday post-market.
* Song is watching for surge in capital raising from sectors
including big data, AI, the auto industry and cryptocurrency
including China
