| When global bourses fall, IPOs shine from emerging new markets |
| Last Updated(Beijing Time):2007-12-05 11:10 |
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Investors snapped up new shares of Sao Paulo-based Bolsa de Mercadorias & Futuros-BM&F SA, Latin America's biggest derivatives market, in its IPO last week, offering to buy 14 times more stock than the company sold, according to a person familiar with the sale. The stock jumped 20 percent on its first day of trading.
China Railway
China Railway Group Ltd, the world's third-biggest construction company, surged 69 percent in its Shanghai trading debut on Monday on optimism that the nation's growing transport demand will spur earnings. The company raised 22.4 billion yuan (US$3.03 billion) in the Shanghai offering and another HK$19.2 billion in a Hong Kong IPO, people with direct knowledge of the sales said last month.
China, India, Brazil and other emerging-market nations will expand 7.4 percent next year, compared with a rate of 2.2 percent in industrialized regions including the US, Japan and Europe, according to International Monetary Fund projections.
In the US, where subprime mortgage losses have caused the worst housing recession in 16 years, the economy may expand 1.9 percent in 2008, according to the IMF.
"The emerging markets are a few steps removed," said Henrik Strabo, chief investment officer at Clay Finlay Inc in New York. "Even if things get a little rusty here, the emerging markets will still be OK."
Financial, consumer and industrial companies sold about US$48 billion in shares through IPOs this quarter, or 72 percent of all offerings globally. A total of 131 companies in developing nations have raised US$35.4 billion through IPOs in the same period, versus US$32.7 billion raised by 117 companies in developed countries. Emerging-market IPOs also outpaced those from developed nations in the first nine months of the year, with US$98.4 billion raised compared with US$89.2 billion. |
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