The Banking and Strategy Initiative

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The boom in emerging markets | Advantage zyaada

Markets around the world, with Corporates from India, China and Mexico, showed a hunger for Capital in the markets with investors closing on big deals in Essar energy even after a dress down in pricing. At least 3 big deals from China including L’Occitane and Emerging Market major Sateri International  and 6 deals from Mexico in all netting $3-5 billion from each national market in investor cash outweighed regulatory concerns and withdrawals from Uralchem of Russia and pressure on Greece and Goldman Sachs.

Capital raising continues to be an issue in the UK and maybe developed markets elsewhere as Spain also comes under increasing scrutiny for its outstandings and deficit financing in Europe itself in Germany , France and UK.  Markets in China continue their buoyancy and encourage investment bankers in Mexico and Brazil to come out and raise capital for business. Goldman Sachs led a larg capital raising by Bovespa last year in Brazil. Each of these emerging market IPOs is more than $250 million but sizably less than last years’ $1 billion plus IPOs. That honor went to the world’s most popular travel engine Amadeus that raised $1.74 billion and Brazilian beef makeer JBS that plans to raise $1.04 billion domestically this year.

Bringing Home the Bacon: Tripe-Based Drug Hits Gold

April 30, 2010, 6:55 AM

A drug harvested from pigs’ intestines has made a low-profile Chinese couple the nation’s wealthiest overnight. Husband and wife Li Li and Li Tan’s Shenzhen Hepalink Pharmaceutical sold 10 percent of its shares this week in an I.P.O. that values their stake at about $6.2 billion, The Financial Times reported.

The I.P.O. also earned Goldman Sachs a near 200-fold profit on its original $5 million investment. Read More »

Uralchem, the Russian fertilizer company that was planning an initial public offering, has reportedly pulled the listing because of insufficient investor interest, The Telegraph said, citing media reports.

The planned $600 million I.P.O. may be pushed to a later date, people familiar with the situation told Dow Jones Newswires. Books were due to close Thursday with conditional dealing expected to begin Friday.

L’Occitane, the French cosmetics company that produces its fragrant body lotions, candles and other goods in Provence, scored $707 million in an initial public offering in Hong Kong.

Citing people familiar with the deal, The Financial Times notedthis was the first I.P.O. of a French company in Hong Kong.

L’Occitane sold 364.12 million shares at 15.08 Hong Kong dollars each, which was the top of its intended price range. The company is valued at $2.8 billion at that price.

Go to Article from The Financial Times (Subscription Required) »

London’s biggest proposed stock market listing in over two years will reduce its asking price in a move that highlights the instability of the market in the United Kingdom for new offerings, especially amid the havoc from the crisis in Greece.

The Financial Times reported that Essar Energy had reduced the asking price for its $2.5 billion flotation to below its planned price range. Read More »

Mexican I.P.O.s on the Rise in 2010

April 29, 2010, 5:55 AM

In what would be the first I.P.O. in Mexico since June 2008, supermarket operator, Grupo Comercial Chedraui could raise as much as 4.8 billion pesos ($389.1 million), Bloomberg News reported.

However, Chedraui’s offering won’t be the only one. According to Jose Miguel Garaicochea, a money manager for Banco Santander, six companies may list in 2010. If so, Bloomberg News noted, 2010 would be the busiest year for sales since 1997. Read More »

Sateri Seeking $1 Billion Hong Kong Listing

April 29, 2010, 5:34 AM

Sateri International, a privately held producer of the wood-based cellulose used to make textiles, is eyeing a $1 billion listing in Hong Kong, The Financial Times reported.

The company owns pulp production mills in both Brazil and China and would use the capital to further expansion amid rising demand for its products, the newspaper said citing people familiar with the matter. RGE, controlled by Indonesian mogul Sukanto Tanoto, owns the majority of Sateri.

Go to Article from The Financial Times (Subscription Required) »

Amadeus Raises $1.74 Billion in I.P.O.

April 29, 2010, 5:28 AM

With 1.32 billion euros ($1.74 billion) raised, Amadeus IT Holding has completed the largest initial public offering in Western Europe since 2008. Bloomberg News reported that the flight-booking outfit sold shares above the midpoint of its price range selling 119.68 million shares at a price of 11 euros a piece.

Controlled by private equity firms BC Partners and Cinven, the Madrid-based company had a market value of 4.93 billion euros when it began trading Wednesday. Read More »

Semiconductor Maker Prices I.P.O. for $92 Million

April 29, 2010, 2:46 AM


Alpha and Omega Semiconductor said Wednesday that it priced shares in its initial public offering within the expected range, Reuters reported.

The chipmaker sold a total 5.09 million shares for $18 each, raising about $91.6 million, with 3.4 million shares coming from the company and a further 1.69 million from shareholders. Read More »

Giant Beef Producer to Sell $1 Billion in Shares

April 28, 2010, 7:19 AM

Three months after delaying the listing of its United States unit,JBS is ready to raise $1.04 billion by selling new voting shares. The world’s largest beef producer, based in Brazil, will sell 230 million shares, Bloomberg News reported.

Through the offering, JBS joins a group that includes 12 other companies that scheduled share sales in Brazil so far this year. That figure is a sharp increase compared with the same period last year, when only two companies held share sales. Read More »

Sinopec to Sell Nearly $3 Billion in Bonds

April 28, 2010, 6:34 AM

Sinopec will carry out China’s biggest exchange-listed corporate debt issue when it sells up to $2.93 billion in bonds on the Shanghai Stock Exchange next month.

The Wall Street Journal, citing people familiar with the plans,said the company, Asia’s top oil refiner, intends to pay back bank loans with part of the cash raised. Read More »

China Said to Block Real Estate Fund-Raising

April 28, 2010, 3:22 AM

China will place a moratorium on capital-raising by real estate firms as part of a broader campaign to rein in property price rises, state media reported on Wednesday, citing unidentified sources.

Reuters reports the move could stand in the way of about 110 billion renminbi ($16.1 billion) in share issues planned by 45 companies, unnamed sources close to the China Securities Regulatory Commission told the China Daily.Read More »

Jihua Boots Up I.P.O.

April 27, 2010, 6:09 AM

Jihua Group of China plans to raise up to 3.2 billion yuan ($469 million) from an initial public offering in Shanghai, Finance Asia reported. The Chinese regulator is set to study the application on April 28.

The military goods supplier  — which has a 75 percent market share in the country — has a special client in the form of the People’s Liberation Army. Read More »

The Stoxx Europe Christian Index, the first European Christian equity index, was launched on Monday, The Financial Times reported. The launch came as a response to increasing investor demand for so-called ethical stocks following the financial crisis, the newspaper said.

The Stoxx Index is made up of 533 European companies, including BP,Vodafone and GlaxoSmithKline, whose revenues come from only approved sources in line with the values and principles of the Christian religion. Read More »


This entry was posted on May 1, 2010 by in Banking, Emerging Markets, Financial Markets, Retail Lifestyle and tagged .


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