The emerging-market initial public offering boom, predicted for Brazil, Russia and India, is fizzling as inflation sends interest rates up, share prices down and prompts companies to scale back or cancel sales.
While Brazil's stock exchange chief, Russia's biggest underwriter and India's government projected IPOs would rise threefold this year to $64 billion, issues are falling. Brazil dropped 29 percent from the year before to $2.7 billion and India sank 74 percent to $753 million, the least for the period for both since 2009, data compiled by bourses and Bloomberg show. Russia rose 16 percent to $3.3 billion and China slid 4.3 percent to $32 billion.
"It's not wise to be looking at companies that are subscale, subpar," said Aquico Wen, who oversees $1 billion at Esemplia Emerging Markets in London. "There are far too many other chances in the market."
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.