IPO fundraising stagnates in first half: PwC

Just US$13.10 billion (RMB89.8 billion) was raised in public offerings on the mainland’s stock exchanges in the first half of the year, down 41% from the same period last year, the China Securities Journal reported, citing a new report by PricewaterhouseCoopers (PwC). The four initial public offerings (IPOs) on the Shanghai Stock Exchange in the first six months raised RMB66.8 billion, down from the RMB141.1 billion raised in 12 offerings for the same period a year earlier. Meanwhile 54 small to medium-sized firms were listed on the Shenzhen Stock Exchange, up from 38 in the same period last year, raising RMB23 billion, up 87% year-on-year. Feng Heping, a Beijing-based partner at PwC said this year’s snowstorms and Sichuan earthquake had contributed to the inactive stock market. Fellow PwC partner Lin Yizhong said he was optimistic that listings of small and medium-sized firms would remain active in the second half of the year even as interest in larger IPOs remained sluggish. The PwC report predicts that companies will raise US$36.48 billion (RMB250 billion) this year on mainland stock markets, down around 50% from last year.