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More than 200 companies to go public: Report

Updated: 2013-12-24 10:07
By Emma Dai in Hong Kong ( China Daily)

More than 200 Chinese mainland companies are due to make their debut on the A-share market next year after the authorities resumed initial public offering activity in the equity market, predicted Deloitte Touche Tohmatsu, one of the "big four" accountancy firms.

These companies are expected to raise more than 170 billion yuan ($27 billion) in 2014, Deloitte said at a news conference on Monday to launch its report on the IPO outlook for 2014.

Deloitte, which, like the other three big firms, has been active in IPO services, estimated in the report that up to 230 mainland companies, which are already under listing review by the China Securities Regulatory Commission, will be able to complete their listings next year on the mainland equity market. The commission has said that the 12-month moratorium on IPOs will be lifted by the end of January 2014.

In 2012, a combined 103.4 billion yuan was raised by 154 new listings in the A-share market. According to Deloitte's estimates, 2014 is on track to witness a surge in both the number of IPOs by 49.4 percent and the amount of funds raised will rise 64.4 percent from 2012.

More than 200 companies to go public: Report

The report said that 83 companies that have passed the commission's review are set to raise as much as 55 billion yuan. Among them, more than 50 companies are in technology, media, telecoms and machinery manufacturing.

That echoes the estimates of Ernst & Young, another of the big four, earlier in December. The accounting firm sees industrials, technology, media, telecoms and non-high-end consumption products among the top listing sectors for the mainland capital market in 2014. State-supported industries such as those related to environment protection and services businesses, as well as companies integrating high-tech and traditional enterprises - such as online payment settlement and mobile services - are expected to be winners in the IPO rush next year.

In addition, small caps will dominate the IPO market. The majority of the 83 firms ready for listing - approximately 65 companies - are expected to stage IPOs smaller than 500 million yuan each, said the Deloitte report. Most of the listings will concentrate on the growth enterprise market and the small and medium enterprise board.

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