CSRC toughens IPO process with roadshows spot check

The China Securities Regulatory Commission will be conducting random spot checks on management roadshows in a bid to stop companies and brokers from revealing information that are not included in their IPO prospectus, China’s securities regulator said on January 12.

  • 14 Jan 2014
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Companies and brokerage firms found to gone against the CSRC’s wishes will be penalised, while their IPO could also be suspended.

In addition, the CSRC is also asking companies to publish a risk alert at least once a week starting three weeks before the beginning of the IPO subscription period in the case that a deal is priced at a higher valuation than their industry peers.

Investors too are not spared from the CSRC’s iron hand and those found to have not conducted proper due diligence during the price discovery process could be blacklisted. They will be suspended from participating in subsequent IPO price discovery processes.

The stricter measures come after the regulator approved about 50 companies to conduct IPOs before the end of January. That was after the CSRC released new IPO rules at the end of last year, aimed at improving transparency and increase market participation.

Close to 20 companies had already priced their respective IPOs as of late Monday afternoon, although a few, such as Jiangsu Aosaikang Pharmaceutical, had also abandoned ship.

Aosaikang Pharmaceutical delayed its IPO plans after pricing its shares at a staggering 2012 P/E multiple of 67 times, which was a lot higher than the industry average of 40 times. Aosaikang said it was delaying the IPO because the deal was “too big.”

  • 14 Jan 2014

Bookrunners of International Emerging Market DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 7,375.29 34 9.61%
2 HSBC 7,028.54 49 9.16%
3 JPMorgan 6,581.94 30 8.57%
4 BNP Paribas 4,645.31 13 6.05%
5 Deutsche Bank 3,627.97 23 4.73%

Bookrunners of LatAm Emerging Market DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Bank of America Merrill Lynch 1,663.44 4 15.44%
2 Morgan Stanley 1,595.10 4 14.81%
3 JPMorgan 1,278.49 5 11.87%
4 Scotiabank 1,050.85 4 9.76%
5 Citi 1,002.40 5 9.31%

Bookrunners of CEEMEA International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 3,884.96 9 15.58%
2 JPMorgan 3,300.70 8 13.24%
3 BNP Paribas 3,182.92 4 12.76%
4 HSBC 2,054.96 8 8.24%
5 Saudi National Commercial Bank 1,604.15 2 6.43%

EMEA M&A Revenue

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 02 May 2016
1 JPMorgan 195.08 50 10.55%
2 Goldman Sachs 162.26 37 8.77%
3 Morgan Stanley 141.22 46 7.64%
4 Bank of America Merrill Lynch 114.20 33 6.18%
5 Citi 95.36 35 5.16%

Bookrunners of Central and Eastern Europe: Loans

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 AXIS Bank 85.65 1 100.00%
Subtotal 85.65 1 100.00%
Total 85.65 1 100.00%

Bookrunners of India DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Standard Chartered Bank 510.75 4 16.00%
2 State Bank of India 401.68 3 12.59%
2 Citi 401.68 3 12.59%
4 MUFG 330.94 3 10.37%
4 Barclays 330.94 3 10.37%