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

Obama: Alaskans Feel Signs of Climate Change

They're seeing bigger storm surges as sea ice melts, more wildfires, erosion of glaciers, shorelines More

1855 Slave Brochure Starkly Details Sale of Black Americans

Document lists entire families that were up for sale in New Orleans, offering graphic insight into the slavery trade More

Katrina Brought Enduring Changes to New Orleans

The city’s recovery is the result of the people and culture the city is famous for, as well as newcomers and start-up industries 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.
Colombians Flee Venezuela as Border Crisis Escalatesi
X
August 27, 2015 2:08 AM
Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Colombians Flee Venezuela as Border Crisis Escalates

Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Is China's Economic Data Accurate?

Some investors say China's wild stock market gyrations have been made worse by worries about the reliability of that nation's economic data. And some critics say the reports can mislead investors by painting an unrealistically-strong picture of the economy. A key China scholar says Beijing is not fudging ((manipulating)) the numbers, but that the economy is evolving quickly from smoke-stack industries to services, and the ways of tracking new economic activity are falling behind the change. V
Video

Video Next to Iran, Climate at Forefront of Obama Agenda

President Barack Obama this week announced new initiatives aimed at making it easier for Americans to access renewable energy sources such as solar and wind. Obama is not slowing down when it comes to pushing through climate change measures, an issue he says is the greatest threat to the country’s national security. VOA correspondent Aru Pande has more from the White House.
Video

Video Shipping Containers Provide Experimental Housing

Housing prices around the San Francisco Bay area are out of reach for many people, so some young entrepreneurs, artists and tech industry workers are creating their own houses using converted shipping containers. But as VOA's Mike O’Sullivan reports from Oakland, the effort requires ingenuity and dealing with restrictive local laws.
Video

Video Arctic Draws International Competition for Oil

A new geopolitical “Great Game” is underway in earth’s northernmost region, the Arctic, where Russia has claimed a large area for resource development and President Barack Obama recently approved Shell Oil Company’s test-drilling project in an area under U.S. control. Greg Flakus reports.
Video

Video Philippine Maritime Police: Chinese Fishermen a Threat to Country’s Security

China and the Philippines both claim maritime rights in the South China Sea.  That includes the right to fish in those waters. Jason Strother reports on how the Philippines is catching Chinese nationals it says are illegal poachers. He has the story from Palawan province.
Video

Video Technique May Eliminate Drill-and-Fill Dental Care

Many people dread visiting dentists because they're afraid of drills. Now, however, a technology developed by a British firm promises to eliminate the need for mechanical cleaning of dental cavities by speeding a natural process of tooth repair. VOA’s George Putic reports.
Video

Video China's Spratly Island Building Said to Light Up the Night 'Like A City'

Southeast Asian countries claim China has illegally seized territory in the Spratly islands. It is especially a concern for a Philippine mayor who says Beijing is occupying parts of his municipality. Jason Strother reports from the capital of Palawan province, Puerto Princesa.
Video

Video Ages-old Ice Reveals Secrets of Climate Change

Ice caps don't just exist at the world's poles. There are also tropical ice caps, and the largest sits atop the Peruvian Andes - but it is melting, quickly, and may be gone within the next 20 years. George Putic reports scientists are now rushing to take samples to get at the valuable information about climate change locked in the ice.
Video

Video French Experiment in Integrating Roma Under Threat

Plans to destroy France’s oldest slum have sparked an outcry on the part of its Roma residents. As Lisa Bryant reports from the Paris suburb of La Courneuve, rights groups argue the community is a fledgling experiment on integrating Roma who are often outcasts in many parts of Europe.
Video

Video Kenyans Turn to Agriculture for Business

Each year Kenyan universities continue to churn out graduates for the job market despite the already existing high rate of unemployment among youth in the country. Some of these young men and women have realized that agriculture can be as rewarding as any other business or job, and they are resorting to agribusiness in large numbers as a way of tackling unemployment. Rael Ombuor reports for VOA.
Video

Video First Women Graduate Elite Army Ranger School

Two women are making history for the U.S. Army by proving they are among the toughest of the tough. VOA's Carla Babb reports from Fort Benning, Georgia as 94 men and those two women rise as graduates of the difficult Ranger school.

VOA Blogs