A flurry of initial public offerings (IPOs) planned for December and early 2013 highlight how firms in Indonesia are trying to harness bullish domestic and global confidence to fund plans for expansion.
Currently leading the pack is Indonesia AirAsia, whose planned IPO hopes to raise some Rp1.7trn ($175.78m) in early 2013. The aviation firm is closely followed by state-owned plantation firm Perkebunan Nusantara’s Rp1.5trn ($155.1m) listing, also scheduled for 2013, and state-run construction company Waskita Karya’s Rp1.2trn ($124.08m) December IPO.
The Indonesia Stock Exchange (IDX) saw two IPOs in December, bringing the total number of listings for 2012 to 23. This is down on the 24 IPOs seen in 2011, but continues to underline international sentiment over the vast archipelago’s private equity prospects.
A survey conducted by private equity firm Coller Capital saw nascent Asian economies, such as Indonesia and Vietnam, favoured by one-fifth of investors over the more mature markets found in other Asian countries, including China and India.
Northstar Pacific Partners, a local partner of global investor TPG Capital, for example, raised $800m in 2011 to invest in Indonesian companies. Other large firms, such as Starwood Capital Group, are circling in search of deals, according to reports from the Wall Street Journal.
Posted by cbasdeo09 on January 28, 2013
A growing number of venture capitalists with roots in China are helping prepare Silicon Valley tech startups to enter the Chinese market with cash infusions and business-incubator services.
Deng Feng, founding partner of Northern Light Venture Capital, confers with entrepreneurs working with InnoSpring. [Photo/China Daily]
These financiers – Chinese-born entrepreneurs who studied or made their fortune in California‘s technology mecca or were backed by China‘s government or technology and science parks – are part of renewed VC interest in the region.
China‘s still-growing economy, the central government‘s thirst for technology and incentive programs such as the 1,000 Elite Program of subsidies of up to 1 million yuan ($157,000) each have combined to attract talent and companies across the Pacific.
Venture capitalists with a Chinese background invested in 28 US companies last year, double the number in 2009, according to data from Dow Jones & Co.
In Silicon Valley, Chinese venture capitalists have partnered with US counterparts to compete against established players in the area of tech startup incubation.
Posted by byu2012 on August 19, 2012
Asian stocks rose this week, with the benchmark index posting its longest weekly winning streak since March, after China’s Premier Wen Jiabao said there’s more room to adjust monetary policy and U.S. economic reports signaled strength in the world’s largest economy.
Fanuc Corp., a maker of industrial robots used in Chinese factories, gained 5.8 percent this week in Tokyo. Honda Motor Co., which depends on North America for more than 40 percent of its sales, climbed 5.8 percent. Nan Ya Printed Circuit Board Corp., a Taiwanese maker of computer hardware, surged 12 percent after a report the industry will grow. China Mobile Ltd., the world’s biggest phone company by subscribers, sank 7.8 percent in Hong Kong as profit growth slowed.
The MSCI Asia Pacific Index rose for a third-straight week, gaining 0.2 percent to 120.74 in its longest winning streak since the five days ended March 2. Through yesterday, the Asia- Pacific benchmark has retreated more than 6 percent from a Feb. 29 high amid concern China’s economy is slowing and Europe’s debt crisis is deepening.
Posted by byu2012 on August 18, 2012
G. Bin Zhao, Executive Editor, CHINA’S ECONOMY & POLICY and Managing Director, Gateway International Group Limited, says today at South China Morning Post, unlike CNOOC’s failed bid in 2005 to buy Unocal, its proposal to acquire Nexen has considerably more chance of success, and, on the whole, a deal would benefit both China and Canada.
China National Offshore Oil Corp announced last month that it was proposing to buy Canada-based Nexen in a US$15billion deal. This caused quite a stir in Canada, with the domestic mainstream media reporting it widely. By contrast, the response of the Chinese media and public appears rather muted.
Posted by Admin on August 3, 2012
While several IPOs (initial public offerings) have been shelved in recent months in Asia’s financial hubs Hong Kong and Singapore, strategists say Malaysia, which has seen some successful listings this year, will maintain its edge given a strong pool of domestic investors and reasonably priced deals.
Malaysia was home to the world’s second biggest IPO in 2012 with homegrown palm oil firm Felda Global Ventures’ $3.3 billion listing last month. Asia’s largest hospital operator, which is backed by the Malaysian government,IHH Healthcare is planning to list its shares in Malaysia and Singapore on July 25 after successfully pricing a $2.1 billion IPO.
This will take the number of public listings in Malaysia to around 11 so far this year and means that Kuala Lumpur is running neck-and-neck with China’s Shenzhen as Asia’s top destination for IPOs.
Posted by Admin on July 23, 2012
Picture by Phillip Gostelow
China recently has reported that its annual gross domestic product came in at 7.6 percent in the second quarter. However, experts, McDonald, once vice-president of Lehman Brother, doubted its validity, and and made a stark comparison to LIBOR.
A fake Libor rate, the scandal involving global benchmark interest rates that has raised the level of distrust in major banks and markets, is nothing compared to the damage that could be done if China’s true economic growth figures were revealed, according to Larry McDonald’s newsletter.
“Is Chinese GDP the new Libor?” asked McDonald, author of “A Colossal Failure of Common Sense: The Inside Story of the Collapse of Lehman Brothers,” in a much talked about note to clients last week. “More and more investors are starting to question the Chinese math on GDP.”
Annual gross domestic product came in at 7.6 percent in the second quarter, according to China’s government on July 13th. The report was better than investors expected, easing concern of a dramatic slowdown for the world’s second-biggest economy and sparking a bid in risk assets like stocks that has lasted for two weeks.
But slowing imports and industrial production, as well as harder-to-fudge electricity usage data, points to much slower growth, according to McDonald and other investors. Barclays believes the number should have been more like 7.15 percent.
Posted by Admin on July 23, 2012
China has made its first tentative investment in Canada during 2005, when it purchased 16.7 percent share of the then-private oil sand developer MEG Energy with 120 million dollars. Today, reported by the Reutors, it is making a bigger move.
China’s top offshore oil producer CNOOC has agreed to buy Canada’s Nexen for about $15.1 billion in one of the most ambitious acquisitions by a Chinese company to date that may test Ottawa’s tolerance of foreign takeovers.
State-controlled CNOOC said it would pay $27.50 per common share, representing a 61 percent premium to Nexen’s closing price in New York on Friday.
“The aggregate value of the consideration of the proposed acquisition is approximately $15.1 billion (approximately HK$117.2 billion), and is to be payable in cash,” CNOOC said in a statement filed on the Hong Kong stock exchange.
Posted by Admin on July 23, 2012
The likes of Sino Land Co. Ltd., Henderson Land Development Co. Ltd. and Cheung Kong (Holdings) Ltd. could be seeing their elite status as property developers shaken up, according to Barclays.
The bank notes that there has been an uptick in deals in recent months by small and mid-cap property developers in Hong Kong, as well as increasing interest from mainland players, which it says is “unusual.”
Earlier this month, an entity backed by Chinese state-owned commodities trader Cofco Corp. bought a majority stake in Hong Kong Parkview Group Ltd. for HK$362 million. Hong Kong Parkview is the developer of high-end housing complex Parkview.
Posted by Admin on July 19, 2012
Catherine Boyle of the CNBC have reported on the Global Economy.
The debate over whether the world’s economy is facing a dramatic crash has gained traction in recent weeks, as the euro zone debt crisis continued to dominate headlines and worries about other major economies like the U.S. and China grew.
Bearish forecasts from people like hedge fund manager Hugh Hendry and “The New Depression” author Richard Duncanhave grabbed attention. But there are still many who believe that the world is facing gradual change rather than the rapid tumble of a crash.
“This isn’t a crash in a conventional sense, but a structural down-move in global growth. It’s a new and lower trend,” Paul Donovan, deputy head of global economics at UBS Investment Bank, told CNBC’s “Squawk Box Europe” Wednesday. “We are going through one of the biggest structural changes that we have seen in the global economy since the 1971-73 process.”
Posted by Admin on July 18, 2012