Nas­daq bullish on list­ing cli­mate, de­spite un­cer­tain­ties

China Daily (Canada) - - ACROSS AMERICAS - By LI XIANG in Bei­jing lix­i­ang@chi­

Nas­daq OMX Group Inc, the United States-based multi­na­tional fi­nan­cial ser­vices cor­po­ra­tion, said on Tues­day it re­mained con­fi­dent on the list­ing busi­ness, de­spite grow­ing con­cerns about prospects dulling for ini­tial public of­fer­ings glob­ally amid un­cer­tain mar­ket con­di­tions.

Robert McCooey Jr, Nas­daq’s vice-pres­i­dent for new list­ings and cap­i­tal mar­kets, said that the IPO pipeline of the bourse re­mained strong and it is yet to see any com­pany can­cel­ing its list­ing plan. Nas­daq OMX owns and op­er­ates the Nas­daq stock mar­ket and eight Euro­pean bourses.

There are two to three Chi­nese com­pa­nies that are plan­ning to float new shares on the Nas­daq in the fall and none of them have sig­naled any in­ten­tion to drop their plans, McCooey told a news con­fer­ence in Bei­jing.

The on­go­ing tur­bu­lence in the global eq­ui­ties mar­kets has led to con­cerns that the IPO mar­ket will likely ex­pe­ri­ence a tougher time as the volatile mar­ket con­di­tions may de­press com­pa­nies’ val­u­a­tions and even ruin their IPO plans.

The value of cross-bor­der list­ings by Chi­nese com­pa­nies dropped to $18.9 bil­lion be­tween Jan­uary and Septem­ber, down by 55.2 per­cent from the same pe­riod last year, ac­cord­ing to data from Dealogic Ltd.

Glob­ally, the num­ber of IPOs in the third quar­ter of the year de­creased by 55 per­cent from the level of the pre­vi­ous quar­ter, while the value of the new deals plunged sharply by 75 per­cent.

Sixty-three com­pa­nies can­celed or post­poned their IPO plans in the third quar­ter, ac­cord­ing to a re­cent re­port by ac­count­ing firm EY.

Maria Pinelli, global vicechair for ini­tial public of­fer­ing at EY, ex­pected a con­tin­ued sharp con­trac­tion in the num­ber and value of IPOs in global mar­kets due to the mar­ket tur­bu­lence.

But McCooey dis­missed Pinelli’s idea that the global cap­i­tal-rais­ing mar­ket may have en­tered a “win­ter time”, adding that there are still many dol­lar-de­nom­i­nated pri­vate eq­uity funds in the US that are look­ing to in­vest in high-growth Chi­nese com­pa­nies which may have fi­nanc­ing dif­fi­cul­ties at home.

China’s se­cu­ri­ties reg­u­la­tor has tem­po­rar­ily halted IPO ap­provals in an at­tempt to shore up the A-share mar­ket as the bench­mark in­dex fell by more than 40 per­cent in the past three months.

McCooey ad­mit­ted that con­cerns about the slow­ing Chi­nese econ­omy and the de­pre­ci­a­tion of the yuan are adding pres­sure on stock prices of both Chi­nese and US com­pa­nies.

Robert McCooey Jr, vice-pres­i­dent for new list­ings and cap­i­tal mar­kets at Nas­daq

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