Red dragon breathes IPOs as Bric issues boom in January

CHINESE companies have dominated this year’s initial public offerings in key emerging markets, according to data compiled by Thomson Reuters.

More than 65 per cent of IPOs in Brazil, India and China in 2010 have come from the far east. China Electric’s $1.5bn (£930m) share issue on 20 January led the way among Chinese companies, with smaller fundraisings from technology firm Zhejiang Electrics and consumer company Haining China Leather Market the next largest at $369m and $205m respectively.

However, Chinese issues were dwarfed by Russian tycoon Oleg Deripaska’s $2.2bn IPO for Rusal, the aluminium producer. Investment houses Bank of America Merrill Lynch, BOC International, Nomura, Renaissance Capital, VTB Capital and Sberbank were bookrunners.

Thomson Reuters said January was shaping up to be a record month for Bric economy issues. IPOs in Brazil, India and China have accounted for 76 per cent of global activity so far this year.

Materials was the most represented sector in emerging markets share issuance, accounting for 35 per cent of activity. Energy and high technology were the joint second most prevalent sectors at 24 per cent apiece.

Last year, IPOs in Brazil, India and China raised a total of $63bn, accounting for more than 90 per cent of emerging market offerings. The world’s largest IPO of 2009 was that of the Brazilian subsidiary of Banco Santander, according to the data from Thomson Reuters.