August 3, 2011 / 11:45 AM / 8 years ago

Asia private equity-backed IPOs surge to all-time high

Chairman and CEO of Samsonite International Tim Parker (C) delivers his speech during the trading debut of the company at the Hong Kong Stock Exchange June 16, 2011. REUTERS/Bobby Yip

HONG KONG (Reuters) - Private equity- and venture capital-backed initial public offerings in Asia have surged 77 percent in the year to date to the highest level ever, according to the latest Thomson Reuters data, as funds look to show returns to investors ahead of new fundraisings.

With investors wary after an extended period of no returns and mixed results on some investments made at the peak of the cycle, global IPOs have surged as funds look to book returns.

Asia has recorded $14 billion from 89 PE- and VC-backed IPO exits in the year to date, Thomson Reuters data shows.

Deals include CVC Capital Partners Ltd CVC.UL exit of Samsonite International SA (1910.HK) through Hong Kong raising $1.3 billion, and New Horizon Capital’s $1.4 billion IPO of Sinovel Wind Group Co Ltd (601558.SS) in January in Shanghai.

Top markets for PE and VC exits are Shanghai ($3.7 billion), Shenzhen ChiNext ($3.7 billion), and Shenzhen SME ($3 billion), continuing China’s IPO boom that began the spring of 2009.

And with a shorter timetable from investment to exit and strong evidence of increased valuations, Chinese companies top the deal flow list in Asia. China has the most IPO exits — 80 in total — this year, for a total of $12.8 billion, or 29 percent of global volume.

Asia-Pacific was the top global destination for all IPOs in the first half of 2011, with $49.4 billion in deals, or 46 percent of the total. Hong Kong has seen the most activity in Asia with $13.4 billion worth of IPOs so far this year, more than double a year earlier.

Reporting by Stephen Aldred; Editing by Chris Lewis

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