Chinese Backpedal From U.S. IPO Market as Mainland Deals Surgeby
Total value of U.S offerings declines 98% to $666 million
Last year's total included Alibaba's record $25 billion sale
Initial public offerings by Chinese companies in the U.S. have plunged this year as new listings on the mainland skyrocketed.
Companies domiciled in China have announced 14 IPOs on American exchanges this year with a total value of $666 million. That would be the fewest deals since 2013 and the smallest volume since 2011. The total dollar amount is down 98 percent from $29 billion in 2014, which included Alibaba Group Holding Ltd.’s record $25 billion sale. Excluding the e-commerce company’s IPO, volume is down 84 percent, and this year is set to be the third-slowest since 2003.
On the mainland, companies are going public at the fastest pace in at least 12 years. There have been 531 deals announced in 2015 with a total value of almost $17 billion, exceeding last year’s total volume by by 33 percent. China last month ended a five-month freeze on new stock sales, which was one of the measures officials took to contain an equity rout that wiped out as much as $5 trillion in market value from mid June through late August.
A record number of U.S.-traded Chinese companies also are seeking to move their stocks back to the mainland. The latest, Trina Solar Ltd., said Monday that its chairman and founder Jifan Gao offered to take the company private, bringing the total number of such proposals this year to 38, five of which have been completed.