http://www.bloomberg.com/news/2011-06-23/prada-grapples-with-hong-kong-slump-as-majority-of-ipos-drop-in-china-rout.html
Prada SpA’s trading debut in Hong Kong just as the territory becomes one of this year’s worst-performing markets for initial public offerings may foreshadow a slowdown in IPOs by foreign companies.
A decline by Prada would add to losses of $873 million for investors in the 31 Hong Kong IPOs this year, according to data compiled by Bloomberg.
Only one of the 16 companies that started trading this year after raising more than $100 million in a Hong Kong IPO has risen from its offer price, the lowest ratio among the 10 largest equity markets, Bloomberg data show.
“When those high-profile ones come with a lot of promise and are getting priced at the low end, that’s usually a sign that things are tired and investors or companies may decide they need to take a break or bring down their expectations,” said Katherine Schapiro, a San Francisco-based manager at Sentinel Asset Management Inc., which oversees about $20 billion, including emerging markets equities. “The Hong Kong IPO market has been quite frothy for some time.”
Prada SpA’s trading debut in Hong Kong just as the territory becomes one of this year’s worst-performing markets for initial public offerings may foreshadow a slowdown in IPOs by foreign companies.
A decline by Prada would add to losses of $873 million for investors in the 31 Hong Kong IPOs this year, according to data compiled by Bloomberg.
Only one of the 16 companies that started trading this year after raising more than $100 million in a Hong Kong IPO has risen from its offer price, the lowest ratio among the 10 largest equity markets, Bloomberg data show.
“When those high-profile ones come with a lot of promise and are getting priced at the low end, that’s usually a sign that things are tired and investors or companies may decide they need to take a break or bring down their expectations,” said Katherine Schapiro, a San Francisco-based manager at Sentinel Asset Management Inc., which oversees about $20 billion, including emerging markets equities. “The Hong Kong IPO market has been quite frothy for some time.”
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