Approx. 300% Up over 2017’s 17 IPOs; Almost USD$10 Billion in Funds Raised
Predicts Banner 2019 for “Leading Chinese Export You Never Heard About”
Following New York’s record year for Chinese Initial Public Offerings (IPOs) in 2018, Boustead Securities, LLC ‘s Head of China and Head of Equity Capital Markets Dan McClory was interviewed on China Central Television's CGTN America show, and provided commentary on the nearly 50 companies that commenced trading on NASDAQ and the New York Stock Exchange (NYSE) last year. “Chinese IPOs are the leading export you never heard about,” McClory stated. “Not only were Chinese companies the largest source of IPOs in the US, they once again held the biggest market share of global listings as a country, especially in the growth company segment for average deals in the USD$250 million market capitalization size range,” he said.
McClory, a founder and the CEO of Boustead & Company Limited, which has offices in Los Angeles, New York, Beijing, London and San Francisco, also leads Boustead Securities’ China Team which completed four IPOs and two uplistings in 2018, all on NASDAQ. He said that “Chinese growth companies are looking for capital the world over, and next to Hong Kong, the US is their top choice for listing on an international stock exchange. This is in part due to IPOs on the Chinese mainland being down 78% in 2018, from 411 in 2017 on the Shanghai and Shenzhen stock exchanges, to just 94 last year,” he stated in an interview with Karina Huber, CGTN's New York Correspondent, and Rachelle Akuffo, Washington, D.C.-based Business Anchor for CGTN’s Global Business America. CGTN’s parent is Beijing-based CCTV, the largest TV network in China, which reaches an audience of more than one billion people. CGTN America's English News Channel has more than 100 million viewers in 120 countries.
According to research provided by Weitian Group, in 2018 Chinese IPOs in the US totaled 48. This includes: 38 IPOs, 4 SPAC IPOs, 2 SPAC Mergers, and 4 Uplistings.
“Let’s take apart who’s buying these Chinese IPOs in the US,” McClory said to Karina Huber, “the majority of Chinese companies that are showing up to IPO in New York have solid, strategic, long term, local investors from China and Asia already behind them. They’re not penniless, but, rather, have some serious backing,” he continued. “When we go to New York for road shows of Chinese companies, we pretty much have the whole IPO already put away,” he stated.
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"Another reason that Chinese companies call us up and ask how they can get listed on NASDAQ or the NYSE is the opportunity to do follow-on offerings and raise even more capital," McClory responded to Huber, adding “these are pragmatic, quality Chinese companies with good corporate governance, revenue or earnings growth and in many cases high levels of innovation,” he said.
“We believe 2019 will be banner year for Chinese IPOs in the US,” McClory predicted. “I wouldn’t be surprised to see another record-breaking performance. At Boustead we have over 20 companies in the SEC registration process to get their IPOs approved. It’s quite a solid pipeline of deals and the calendar looks very good already,” he concluded.
Dan McClory, Head of Equity Capital Markets and Head of China
About Boustead Securities, LLC
Boustead Securities, LLC is an investment banking firm that advises clients on IPOs, mergers and acquisitions, capital raises and restructuring assignments in a wide array of industries, geographies and transactions. Our core value proposition is our ability to create opportunity through innovative solutions and tenacious execution. With experienced professionals in the United States and around the world, Boustead's team moves quickly and provides a broad spectrum of sophisticated financial advice and services. For more information visit www.boustead1828.com.
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