Chinese Companies Raised $24.5 Bln in US IPOs Last Year
2015-02-05 11:20

Chinese Companies Raised $24.5 Bln in US IPOs Last Year

(First posted on tech.sina.com on 02/02/2015. For original Chinese, click here.)

According to a report released by KPMG on the 2nd of February, 2014 has been the most active year for Chinese companies since 2011, in terms of IPO and funds raised. 

Last year, a total of 15 Chinese companies held their IPO in the United States, issuing enough new shares to raise $25.4 billion.

Between 2010 and 2013, a total of 60 Chinese had their IPO in the USA, fund-raising a grand total of $6.5 billion, considerably below amount raised in 2014.

KPMG anticipates that 2015 will see even more US-based IPOs from Chinese companies, especially Internet companies. Since the second half of 2013, IPOs in the US have helped Chinese companies recover momentum. Currently, signs are that this trend will continue to grow.

KPMG's head of US markets, Jiang Haoming, said that the 2014 US IPO market volume and amount raised hit all-time highs since 2000. In 2014, there 275 IPOs, which $85.3 billion. This record-breaking number was largely thanks to Alibaba's IPO, the largest in history.

In the third quarter of 2014 Alibaba listed in the United States, raising $21.8 billion, becoming the largest ever globally financed IPO and accounting for about 26% of the total amount of money raised by IPOs in the US in 2014.

Chinese e-mall Jingdong's IPO raised $1.78 billion in the second quarter, making it the seventh largest in the United States for 2014.

Aside from Alibaba and Jingdong's mega IPOs last year, five other Chinese companies listed on the NYSE, averaging about $142 million in funds each and collectively raising $1.39 billion.

According to Jiang Haoming, given the positive listing performances in 2014, the IPO market is expected to maintain this momentum in and could likely hit a new high.

However, despite the continued success of US-listing Chinese companies, 2014 was unique in its listing of the giant Alibaba. Chinese enterprises will raise significantly lower amounts in the years following 2014.

As of January 15, 2015, two Chinese companies, Hailiang Education and Wowo Group, have listed in the US.


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