Deals
This Could Be the Last Decent Shot at Making 680% on China IPOs
- Successful bid rate seen falling after next set of 28 deals
- No upfront payments in new IPO system to cause surge in orders
China Restarts IPO Process for Ten Companies
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What once looked like long odds of securing shares in Chinese initial public offerings now look too good to pass up.
The final 28 IPOs under China’s existing online lottery system will start taking orders as soon as this month. While chances of getting an allocation have never been stellar at about 0.6 percent, a requirement for prospective investors to pre-fund their bids kept a cap on competition. After this batch of deals is completed, authorities will scrap the upfront payment rule, prompting a surge in investor participation that China International Capital Corp. says will slash the odds of a winning bid to about 0.01 percent.