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Equity New Issues in 2001 to Focus on Telecoms in Asia
Economists from the Hong Kong-based Credit Suisse First Boston (CSFB) said Thursday, December 16, equity new issues next year in Asia will focus on privatization and telecom stocks.
While Asian new issue activity in 2001 is not likely to top the record levels set this year, there will continue to be a strong deal flow dominated by privatization and telecom stocks, especially in China's mainland, Taiwan, South Korea and India, according to George Pavey, vice-president in equity capital market at CSFB, a leading global investment banking firm.
A number of large and high profile privatization, mainly out of China's mainland and Taiwan, will result in the continued dominance of North Asia in total new issuance, Pavey said.
Pavey predicted that massive issuance out of the telecom sector across Asia will be required to fund 3G mobile phone licenses as well as the building of 3G infrastructure in the region.
"There was a clear trend toward larger deal sizes, a trend we expect to continue for international offerings as investors seek increased liquidity," Pavey noted. "The preferred size for international offerings has certainly increased over the last 12 months," he added.
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