Tenet Fintech Group Inc. (CSE: PKK, OTC Pink: PKKFF)
Commercial Lending in China Ready to Tenet!
Global exchanges attracted the largest number of listings since the financial crisis this year, with a resurgence of activity in the US and a record number of Chinese deals belying concerns that companies are cooling to the idea of public ownership.
Almost 1,700 companies floated in 2017, an increase of 44 per cent over 2016 and the most initial public offerings since 2007, according to Dealogic. Proceeds rose 44 per cent to $196bn, the largest amount since 2014, which had been boosted by Alibaba’s $25bn listing.
In the US companies raised $49bn — double the $24bn of listings in 2016, which was the worst year for IPOs in more than a decade. European listings rose more than 40 per cent and China marked a record number of deals, which helped to boost the global deal count. More than 400 companies floated in 2017 on the mainland markets, comprising the Shenzhen and Shanghai stock exchanges, according to EY.
In Asia themes included an insurance boom in India while China’s shift from manufacturing to a services-based economy was reflected in the listing market.
However, the performance of some of the year’s biggest deals tempered enthusiasm among some investors about the year ahead.
The average gain of 23 per cent for IPOs in 2017 in the US did not significantly outperform the 20 per cent rise in the S&P 500 index, according to Renaissance Capital, which runs IPO-focused funds.
Snap, the owner of the photosharing app Snapchat and the year’s largest listing, is trading about 10 per cent below its IPO price. Pirelli returned to the public market in a $2.8bn deal, but the shares in the Italian group priced near the bottom end of the range and fell further in the first few weeks of trading. Other European IPOs that launched towards the end of 2017 also generated lacklustre returns for investors in the days after pricing.
“After-market performance is something everyone has to be responsible for next year,” said Achintya Mangla, head of Emea equity capital markets at JPMorgan, who added that poor IPO performance was one of the few threats to issuance volumes in 2018.
Other bankers are more bullish on prospects next year. Gareth McCartney, head of Emea equity capital markets syndicate at UBS, said the number of potential IPOs that could come to market in 2018 was “almost unprecedented”.
Bankers also predicted that 2018 could bring more decacorns, or private tech companies with valuations of more than $10bn.
Source: Financial Times
