China takes lion share of property IPOs

CHINESE real estate companies are cashing in, taking the lion share of IPOs in the Asia Pacific, according Thomson Financial.

So far in 2007, Chinese real estate companies raised $US2.1 billion in capital, which accounts for 50% of planned property IPOs in the Asia Pacific region, excluding Australia and Japan.

So far, Country Garden‘s IPO in April contributed $US1.9 billion of the volume. The deal remained the largest IPO by a Chinese real estate company and the second in Asia on record.

A total of six Chinese Real Estate companies are also expected to go public this year, with estimated proceeds amounting to $US1.4 billion.

All in all, there are 13 real estate IPOs are expected to launch in 2007 raising $US4.97 billion.

Real estate is second most active sector in region, behind Financials service with 17 IPOs planned totaling $10.87 billion.

The real estate sector contributed 18.5% of Asia’s IPO total last year, proceeds from Real Estate IPOs in China totaled $US530.8m while 2005 volumes reached only $US767.8 million.

In total, China is leading in worldwide IPO volumes raising $US14.1 billion worth of capital from 46 issues, overtaking the United States with $US11.7 billion from 47 issues.

Last year, China also lead worldwide volumes with $US51.7 billion versus $US42.9 billion.

In 2005, Chinese issuers ranked second also, raising only $US19.2 billion in IPO proceeds.

Australian Property Journal