Xinhua BEIJING, Jan. 17, according to The Wall Street Journal Chinese Online news, initial public offerings in Asia this year (IPO) business is booming, many investment banks as a slice, started competing Competition, but the careless observer may did not notice the fact: the cost of these transactions is not high is astounding. But Asian companies now give a tempting reward, which encourages business investment banks go all out to reward IPO fees.
IPO business in Asia in terms of overall investment banks has been a major cash cow. Last year, the IPO market in Hong Kong amounted to 52.9 billion raised, the highest first in the world, New York, placing him second child, only 34.6 billion U.S. dollars. Therefore, IPO investment bank in Asia one of the most profitable business, accounting for one third of total revenue investment bank.
Goldman Sachs Group (Goldman Sachs) in Asia (excluding Japan), co-head of equity capital markets, sending gold (Jonathan Penkin) said that Asia's IPO brilliant performance over the past year, this year will continue to be introduced on a global scale attention to IPO financing. Goldman Sachs was AIG Insurance Holdings Limited (AIA Group Ltd.) And the Agricultural Bank of China IPO's lead underwriters. The statistics data provider Dealogic, Goldman Sachs Asia-Pacific region last year made one of the largest equity financing investment banking transactions, a total of 31.47 billion U.S. dollars worth of 88 transactions provided advisory services.
IPO costs in Asia, but the total funds raised to a percentage of often lagged behind the rest of the world. China, Hong Kong, mainland China and Southeast Asia, the underwriters the total transaction cost is 2.4% to 3.5%, while Japan is 3%. Investment bankers said that India and South Korea are generally about 1% in case of government transactions is lower. UK IPO costs are around 3% of the total raised, while the U.S. is as high as 7%.
However, companies clearly want to find a way to provide the investment behavior of their IPO services,
Incidentally, incentive fees, is intended to reward outstanding performance in the IPO transactions in the primary or stellar. Banking sources said that although incentive fees have been introduced for some time, but last year the number of transactions to provide incentive fees began to significantly increase. Dealogic data show, raising a total of 45.2 billion IPO last year, 40 are in Hong Kong provides incentive fees, the total raised in 2009 only 27 of 14.4 billion IPO provides this cost. Asia-Pacific region, 55 IPO provides incentive fees, while in 2009 only 31.
Last year, the European IPO underwriting 20 projects are incentive fees. IPO projects in North America have only one incentive fee, which Seattle Halo Source water technology companies, the Alternative Investment Market in London (Alternative Investment Market) in the initial public offering to raise funds for the $ 80,000,000.
banker said, to pay incentive fees is that the decision whether or not the company itself, but a lot of last year, the number of IPO transactions, and also are large, complex transactions, they are competing to attract investor attention, Therefore, most companies have chosen to pay incentive fees. If the company feels good to do a transaction, it will reduce the incentive fee or a point not to. Comparison of incentive fees in favor of global underwriters.
overall sales and over the years in between the wandering IPO Group, American International Assurance (AIA Group) provides an incentive fee of 0.25%.
return banker is probably the most generous in Southeast Asia company. Last November, Malaysia's Petronas Chemicals Group Bhd. In the IPO raised 4.8 billion during the period, providing the incentive fee is 0.5%. Singapore ProLogis (Global Logistics Properties Ltd.) Abundance of trees Industrial Trust (Mapletree Industrial Trust Ltd.) During the IPO raised $ 3,000,000,000, respectively, and 7.18 billion U.S. dollars, incentive fees are 0.75%. The actual amount of incentive fee paid is not clear.
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