News / Asia

AIA/AIG Looking for Big Month for Hong Kong IPO's

A prospective investor, left, takes a copy of the AIA (American International Group Inc) initial public offering (IPO) prospectus book at a bank in Hong Kong, 18 Oct 2010
A prospective investor, left, takes a copy of the AIA (American International Group Inc) initial public offering (IPO) prospectus book at a bank in Hong Kong, 18 Oct 2010
Heda Bayron

The Asian unit of the troubled U.S. insurance giant, American International Group, is on track to raise at least $18 billion from its Hong Kong initial public offering.  AIA's listing next week will cap a month of intense capital raising in the city.

AIA's initial public offering (IPO) will be one of the biggest in Hong Kong this year. Much of that money will go to its parent AIG to help pay billions of dollars in debt to the U.S. government for its rescue during the financial crisis in 2008.

Mark Konyn is the chief executive officer of fund management firm RCM Asia Pacific in Hong Kong. At a Bloomberg-sponsored conference this week, he said the market will be able to absorb the AIA listing.

"I think the question is whether or not this particular issue runs the risk of exhausting investors through the process," said Konyn.  "Because of the option on the IPO, there's potential to go up. That's a question of how they manage that and how much they leave on the table."

This month, several companies, mostly from mainland China, came to Hong Kong to list on the stock exchange, because of an abundance of money in the financial system.

Mongolian Mining raised $651 million this month to become the first company from the northeastern Asian country to list in Hong Kong. IRC Ltd., a Russian mining company, listed this week, as Hong Kong continues to court foreign resource companies that are looking to sell to China.

Consumer-related Chinese companies have taken advantage of strong domestic demand to find fresh capital. The infant milk powder maker Yashili International Holdings is seeking to raise $400 million.

More companies are waiting to take their turn, but Konyn warns others may not be as successful.

"I think it is inevitable that we are going to go too far with this once again," Konyn added.  "If you look at the pipeline it's over a $100 billion for the region, 70 percent of that is Hong Kong and China. So inevitably, it's going to overshoot, too many issues, and those towards the end and those of low quality are going to underperform."

The price of IRC shares sank more than 8 percent on their first trading day Thursday.

Hong Kong has long been a gateway for mainland Chinese companies to access international capital and recognition. Chinese companies accounted for the majority of new listings on the stock exchange this year.

AIA shares will begin trading October 29.

You May Like

Karzai's Legacy: Missed Opportunities?

Afghanistan's president leaves behind a much different nation than the one he inherited, yet his legacy from 13 years in power is getting mixed reviews More

Secret Service Head: Breach Won't Happen Again

Julia Pierson tells a House panel investigating a recent intrusion at the White House: 'It is clear that our security plan was not executed properly' More

Frustrated, Liberian Students Want Ebola Fight Role

Thousands have volunteered to go to counties, rural villages to talk to people in their language about deadly virus More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Malaysia Struggles to Stop People Joining Jihadi
X
Mahi Ramakrishnan
September 30, 2014 2:16 PM
Malaysian authorities say militant groups like the so-called "Islamic State" have used social media to entice at least three dozen Malaysian Muslims to fight in what they call "jihad" in Syria and Iraq. As Mahi Ramkrishnan reports from Kuala Lumpur, counterterrorism police are deeply worried about what could happen when these militants return home.
Video

Video Malaysia Struggles to Stop People Joining Jihad

Malaysian authorities say militant groups like the so-called "Islamic State" have used social media to entice at least three dozen Malaysian Muslims to fight in what they call "jihad" in Syria and Iraq. As Mahi Ramkrishnan reports from Kuala Lumpur, counterterrorism police are deeply worried about what could happen when these militants return home.
Video

Video Could US Have Done More to Stop Rise of Islamic State?

President Obama says airstrikes against Islamic State militants in Syria will likely continue for some time because, in his words, "there is a cancer that has grown for too long." So what if President Obama had acted sooner in Syria to arm more-moderate opponents of both the Islamic State and the Syrian government? VOA State Department Correspondent Scott Stearns reports from the United Nations.
Video

Video Treasure Hunters Seek 'Hidden Treasure' in Central Kenya

Could a cave in a small village in central Kenya be the site of buried treasure? A rumor of riches, left behind by colonialists, has some residents dreaming of wealth, while others see it as a dangerous hoax. VOA's Gabe Joselow has the story.
Video

Video Iran's Rouhani Skeptical on Syria Strikes

Iranian President Hassan Rouhani expressed skepticism Friday that U.S.-led airstrikes in Iraq and Syria could crush Islamic State militants. From New York, VOA’s Margaret Besheer reports the president was also hopeful that questions about Iran’s nuclear program could be resolved soon.
Video

Video US House Speaker: Congress Should Debate Authorization Against IS

As wave after wave of U.S. airstrikes target Islamic State militants, the speaker of the Republican-controlled House of Representatives says he would be willing to call Congress back into session to debate a formal, broad authorization for the use of military force. VOA’s Michael Bowman reports from Washington, where legislators left town 10 days ago for a seven-week recess.
Video

Video Ebola Patients Find No Treatment at Sierra Leone Holding Center

At a holding facility in Makeni, central Sierra Leone, dozens of sick people sit on the floor in an empty university building. They wait in filthy conditions. It's a 16-hour drive by ambulance to Kailahun Ebola treatment center. Adam Bailes was there and reports on what he says are some of the worst situations he has seen since the beginning of this Ebola outbreak. And he says it appears case numbers may already be far worse than authorities acknowledge.
Video

Video Identifying Bodies Found in Texas Border Region

Thousands of immigrants have died after crossing the border from Mexico into remote areas of the southwestern United States in recent years. Local officials in south Texas alone have found hundreds of unidentified bodies and buried them in mass graves in local cemeteries. Now an anthropologist and her students at Baylor University have been exhuming bodies and looking for clues to identify them. VOA’s Greg Flakus has more from Waco, Texas.
Video

Video Ebola Robs Liberians of Chance to Say Good-Bye to Loved Ones

In Liberia, where Ebola has killed more than 1,500 people, authorities have worked hard to convince people to allow specialized burial teams to take away dead bodies. But these safety measures, while necessary, make it hard for people to say good bye to their loved ones. VOA's Anne Look reports on the tragedy from Liberia.
Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.

AppleAndroid