China IPOs May Raise More Than $61 Billion, PwC Says

Companies in China may raise more than 400 billion yuan ($61 billion) this year from initial public offerings after first-time sales climbed to a record in 2010, PricewaterhouseCoopers LLP said.

Financial services providers, information technology companies and makers of industrial products are likely to lead the IPOs, the accounting firm said in a statement in Shanghai today. About 30 companies are likely to raise 150 billion yuan in Shanghai, while 290 sellers may seek 250 billion yuan in Shenzhen, PwC said.

Companies including Agricultural Bank of China Ltd. and Huatai Securities Co. raised 483.3 billion yuan from IPOs on the mainland last year even as the benchmark Shanghai Composite Index slumped 14 percent. IPOs may slow this year after the government stepped up measures over the past two months to drain liquidity and contain inflation.

“Listings by small and medium-sized firms will dominate China’s IPO market from now,” said Charles Feng, a Beijing- based partner at PwC. “Most mega-sized state enterprises have completed restructuring and become publicly traded.”

IPOs in Hong Kong may raise as much as HK$350 billion ($45 billion) this year with 110 listings, PwC said at a press conference today in Hong Kong. Companies in the city raised a record HK$425.5 billion last year, according to Bloomberg data.

China may begin operating an international board this year, following two years of preparation, PwC’s Feng said today. The infrastructure and conditions are ready, he said.

--Luo Jun. Editors: Chitra Somayaji, Linus Chua

To contact Bloomberg News staff of this story: Luo Jun in Shanghai at +8621-6104-3036 or jluo6@bloomberg.net

To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net

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