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Mainland regains top IPO spot with US$30b in deals

Nevin Nie

The mainland has recaptured the lead from the United States as its companies raised more through initial public offerings, according to Thomson Financial.

Mainland companies raised more than US$30 billion from 132 deals, a 56.6 per cent increase in proceeds from a year ago. That compares with US$29.78 billion from 129 deals for US-based companies.

Companies in the mainland and the US each have about 15 per cent of the global initial public offering market. Thomson Financial tallied the data based on where companies doing initial offerings were headquartered, rather than in which market they launched their shares.

Beijing-based Sino-Ocean Land Holdings' US$1.5 billion offering this week on the Hong Kong stock exchange helped the mainland surpass the US in terms of total proceeds.

The nation's new share issues overtook those of the US last year when mainland-based companies raised a total of US$51 billion, accounting for 19.3 per cent of the global market share. That compares with the US$43 billion raised by US companies which took a 16.2 per cent share.

Globally, public offering proceeds grew 26.3 per cent for the year to date compared with the same period last year, reaching almost US$191 billion compared with US$151.2 billion.

The mainland still has a very large share offering pipeline with 54 deals worth up to US$26.7 billion before the year ends. The size is almost the same value as was raised so far this year, according to Thomson Financial. Future deals include China Pacific Insurance Group, with estimated proceeds totalling US$3.5 billion.

Three banks - Fujian-based Industrial Bank, Bank of Beijing and China Citic Bank - were among the 10 biggest initially public offerings globally, raising a combined US$9.99 billion this year.

'The continued strong sentiment in the mainland stock market has encouraged an increasing number of Chinese companies to raise new equity in their home market,' said Jing Ulrich, the chairman of China equities at JP Morgan Securities.

Thomson Financial statistics did not count recent mega A-share initial offerings by companies already listed in Hong Kong, such as China Construction Bank's US$7.72 billion issue and China Shenhua Energy's US$8.9 billion share sale.

Counting these issues, proceeds from mainland initial offerings so far would be US$59.5 billion, more than double that of a year earlier and accounting for 26.1 per cent globally.

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