At least one corner of the IPO world may see a resurgence: Asian tech companies.
None other than the New York Stock Exchange anticipates that technology firms from that region will have a renaissance next year, with double-digit percentage gains over 2016 levels. That prediction comes from the head of the exchange’s global head of capital markets, Garvis Toler.
Toler told Reuters that new listings from Asia should start to gain traction over the next few months following what by all admissions has been a tough year for IPOs (and not just in Asia).
Key areas ripe for a pickup include China, where Toler stated that the firms that are flush with cash from past years of raising billions of dollars through the private markets and venture capital firms will find it an attractive avenue to pursue. Toler told the newswire that, in terms of overall IPO activity, “If that number was in the double digits in the next year and a half it wouldn’t be surprising at all. I would absolutely say technology is where the greatest interest is coming from,” he added.
Another voice has chimed in with enthusiasm for the public markets, said the newswire. NASDAQ Chief Executive Officer Robert Greifeld said two months ago, Reuters noted, that Chinese firms have been eyeing spots on U.S. exchanges. That roster may include firms such as ride hailing ops such as Didi Chuxing, and Flipkart, the cab hailing company based in Florida. Those firms and others are flush with cash from private sources as well.
Reuters reported that U.S. exchanges are seeking to recoup their popularity with Chinese and other firms, where they have seen a few delisting as Asian companies have sought listing on listing that exist within their own countries. It’s not to say there’s been a total dearth in the U.S., however, as Alibaba listed on the NYSE. But all told, new listings have been off, globally, by half thus far into 2016 amid concerns over valuation and volatilities in equities.