MUMBAI: A surge in first-half India IPO activity is likely to pale in comparison to the second half which could see over $6 billion in deals, banking sources said, with investors encouraged by a pick-up in economic growth and unfazed by Britain’s vote to leave the European Union.
Interest in Indian listings was strong even in the immediate wake of the British decision. Last week staffing firm Quess Corp. saw its $60 million IPO oversubscribed 144 times while shares in city gas distributor Mahanagar Gas jumped 30 percent in their market debut on Friday.
Larsen & Toubro Ltd, whose software services unit, L&T Infotech, announced on Monday the launch of an $183 million IPO on July 11, was also upbeat.
“The opportunity for India now is great. If we get our acts together, post Brexit when everything looks dark, India looks very bright,” said R. Shankar Raman, chief financial officer at the industrial conglomerate.
First-half IPO activity jumped nearly 80 percent to $1.04 billion, Thomson Reuters data showed on Monday, with the market on track for its best year in six. The potential for around $7 billion in IPO deals this year contrasts with $2.2 billion in 2015.
The January-June period this year also marked the highest volume in Indian IPOs for a first-half period since 2010, the data showed.
Key deals will include the India unit of British telecoms group Vodafone which is planning an offering worth as much as $2.5 billion and ICICI Prudential Life Insurance Co. Ltd’s up to $1 billion listing.
“You’ll see a pretty busy calendar,” said Subhrajit Roy, head of equity capital markets origination at local firm Kotak Investment Banking, adding that there had been no apparent loss of appetite from foreign institutional investors.
The bulk of the IPOs in the pipeline are from the finance, utility and communications sectors, which are expected to benefit as rising incomes boost consumer spending in Asia’s third-largest economy.
The Vodafone IPO, which sources have said is expected to be filed in August, will be the first primary share sale by an Indian cellphone carrier in nine years after Idea Cellular’s 2007 listing.
ICICI Prudential Life’s offering, which sources say is set to hit the market in the December quarter, will be the Indian insurance sector’s first-ever IPO.
$6bn India IPO deals seen in second half of this year
$6bn India IPO deals seen in second half of this year
Closing Bell: Saudi main index closes in red at 11,167
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 46.43 points, or 0.41 percent, to close at 11,167.54.
The total trading turnover of the benchmark index was SR4.88 billion ($1.30 billion), as 66 of the listed stocks advanced, while 192 retreated.
The MSCI Tadawul Index decreased, down 5.52 points, or 0.37 percent, to close at 1,506.55.
The Kingdom’s parallel market Nomu lost 153.40 points, or 0.65 percent, to close at 23,486.52. This comes as 32 of the listed stocks advanced, while 31 retreated.
The best-performing stock was Tourism Enterprise Co., with its share price surging 9.95 percent to SR14.36.
Other top performers included Mobile Telecommunication Co., Saudi Arabia, which saw its share price rise by 5.32 percent to SR11.48, and Al Masar Al Shamil Education Co., which saw a 4.86 percent increase to SR22.89.
On the downside, Almoosa Health Co. was the day’s weakest performer, with its share price falling 4.81 percent to SR150.40.
Dallah Healthcare Co. fell 3.81 percent to SR113.50, while Saudi Research and Media Group dropped 3.44 percent to SR100.90.
On the corporate front, Arabian Plastic Industrial Co. has signed a non-binding memorandum of understanding with K. K. Nag to explore the establishment of a specialized manufacturing facility for expanded polypropylene products.
According to a Tadawul statement, the agreement sets out initial mutual obligations and rights between the two parties as part of APICO’s broader expansion strategy to increase production capacity and meet rising industrial demand.
The company’s share price rose 1.21 percent to SR43.52 on the parallel market.
