The end of 2020 created a buzz in the financial market with initial public offer (IPO) of companies like Burger King getting oversubscribed over 157 times. And 2021 is projected to be no less.
The Asian market is scheduled to see some valuable start-ups going public next year as some bankers suggest 2021 might turn out busier than the pandemic-hit year of 2020.
Bloomberg reported William Smiley, co-head of equity capital markets for Asia ex-Japan at Goldman Sachs Group Inc, as saying, “2021 is shaping up to be as busy, if not busier, than 2020, with many of the same themes we saw this year driving issuance.”
As per Bloomberg, 2020 was a blockbuster year for Asian capital markets. Considering the lack of IPOs in the beginning, the year defied all expectation, as investors chased equity returns post high liquidity and low interest rates in the market. The first time share sales this year at $137 billion was the highest in a decade.
High activity was recorded mainly in the Chinese market that recovered from the virus early. JD Health International Ltd, DoorDash Inc and Airbnb Inc are examples of massive gainers. On the other hand, the Southeast Asian markets remained slow but bankers are being positive about things next year.
Watch out for these IPOs next year:
1. Kuaishou Technology: This Chinese short video and live streaming startup, also a major rival of TikTok’s ByteDance is expected to release its IPO early next year. The South Korean company Tencent Holding Ltd-backed startups is eyeing to achieve $50 billion in offering to raise $5 billion. This fundraise has the potential to make it one of the biggest IPOs of the year, as per Bloomberg.
2. Krafton Inc.: Another South-Korean video game holding company, also responsible for the hit game PlayerUnknown’s Battlegrounds recently banned by the Indian government is aiming for an IPO that could be the country’s biggest ever. Bloomberg reported Maeil Business Newspaper projecting $9 billion from the public offering.
3. ByteDance: The largest startup in the world is looking to publicize some of its assets like the domestic version of TikTok ie Douyin and news service Toutiao after a private investment round that can take its valuation to $180 billion, as per Bloomberg News.
4. FWD Group: Backed by the billionaire Richard Li, this Asian firm is planning a Hong Kong IPO that can secure $3 billion . As per Bloomberg News, it could be Asia’s biggest insurer to raise that amount since 2015.
5. Wahaha: The drink producing company of Hangzhou Wahaha Group Co is eyeing to raise $1 billion from its IPO in Hong Kong, as per Bloomberg News. Its product portfolio includes bottled water, yogurt drinks, juices and noodles.
6. JD Logistics: The logistics wing of the e-commerce major in China is mulling to go public and raise as much as $5 billion in most probably Hong Kong. It has also held earlier deliberations with the bank, as per Bloomberg News.
7. Autohome: The company is considering a second-listing in Hong Kong after New York. The car sales website is one of many firms thinking of listing in China amidst US-China row for expansion.
8. ThaiBev’s brewery business: Bloomberg News reported that the beverage making company is thinking to go public in Singapore and raise at least $20 billion. The IPO was initially to come this year but was postponed due to coronavirus.
9. Zomato: As per a Moneycontrol report, the Indian food delivery startup can also come up in the first half of 2021, as the company has confirmed that it is back to earning on par with pre-Covid level. However, it is not known if it will list in the US or India.