IPO Boom in Asian Emerging Markets Bucks Global Trend

(Bloomberg) -- Hanwha Systems Co., a maker of military radars and communication equipment, just set the price for South Korea's second-biggest initial public offering this year, helping boost the deal flow in Asia's emerging markets.

The Seoul-based company and its existing shareholders will raise about $345 million from the sale, according to a filing Friday. The deal size comes in slightly below Lotte REIT Co.'s $353 million offering last month, according to data compiled by Bloomberg.

Despite a global IPO slowdown, emerging markets in Asia are picking up this year, with sizable growth in places like China, South Korea and Malaysia. Deals worth a total of $37.8 billion have been priced in emerging Asia, up 13% from the first 10 months of 2018. China's deal value has surged 50% from a year ago, while South Korea's has seen a 38% increase.

Globally, the value of deals priced has dropped 21% to $153 billion in 2019 from the first 10 months of 2018. Asia's developed markets have suffered a bigger decline, with the value shrinking 37% to $28.1 billion, data compiled by Bloomberg show.

Hong Kong's political unrest and a spate of pulled deals in Australia added to the slowdown in developed Asia.

Nevertheless, a possible $10 billion listing by Alibaba Group Holding Ltd. could save the year for Hong Kong as well as for developed Asia. The Chinese e-commerce giant is deciding between launching a Hong Kong sale in November or delaying it until next year as global uncertainty mounts, people with knowledge of the matter said Thursday.

UPCOMING LISTINGS:

• Hanwha Systems
  • Korea exchange
  • Size $345m
  • Listing Nov. 14
  • Citi, Korea Investment & Securities, NH Investment
• S Hotels and Resorts
  • Thailand exchange
  • Size $236m
  • Listing Nov. 12
  • Credit Suisse
  • Changsha Broad Homes Industrial Group
    • Hong Kong exchange
    • Size up to $194m
    • Listing Nov. 6
    • China Securities, CICC
    • Shanghai Kindly Medical Instruments
      • Hong Kong exchange
      • Size up to $106m
      • Listing Nov. 8
      • Bocom International
      • Bangkok Commercial Asset Management
        • Thailand stock exchange
        • Size at least $700m
        • Listing date TBA
        • Trinity Securities, Kasikorn Securities
        • Sinic Holdings Group
          • Hong Kong stock exchange
          • Up tp $287 million
          • Pricing Nov. 8, listing Nov. 15
          • ABC International, Huatai Financial
          • China Feihe
            • Hong Kong stock exchange
            • Size up to $1.1b
            • Listing expected Nov. 13
            • JPMorgan, CMS, CCB International
            • Bafang Electric Suzhou
              • Shanghai exchange
              • Size $197m
              • Taking orders Oct. 30; listing date TBA
              • Shenwan Hongyuan

              More ECM situations we are following:

              • EHang Holdings, one of several companies seeking to market robo taxi aircraft as soon as next year, has filed for a U.S. IPO
              • Erdenes Tavan Tolgoi, the Mongolian state-owned coal miner, has picked banks including Bank of America and Credit Suisse to lead a planned Hong Kong IPO that could raise more than $1 billion
              • ESR Cayman rose as much as 7.7% in its Hong Kong debut following a $1.6b IPO
              • Fangdd Network Group, a Chinese online real estate broker backed by FountainVest Partners, has raised $78 million after pricing its downsized U.S. IPO at $13 a share, the bottom of a marketed range
              • PTT Oil and Retail Business is still in the process of listing the company, with a goal to increase its international business profile, especially in Southeast Asia, said Chairman Auttapol Rerkpiboon
              • NCS Testing Technology jumped by the 44% first-day limit in Shenzhen its debut
              • Beijing Baolande Software rallied as much as 50% in its Shanghai Star board debut

              SEE ALSO:

              • Asia ECM Weekly Agenda
              • IPO data
              • U.S. ECM Watch
              • EU ECM Watch
              • To receive the ECM Watch in your inbox daily, click the “subscribe” button at the top of this article

              To contact the reporter on this story: Fox Hu in Hong Kong at fhu7@bloomberg.net

              To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Teo Chian Wei, Cecile Vannucci

              ©2019 Bloomberg L.P.

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