Cornerstone craving starts to hurt IPO pitch process

By Jonathan Breen
08 Sep 2016

In a shift that has some bankers worried, Hong Kong’s IPO market has reached a stage where advisers need to pitch for a deal armed with cornerstone investors. Equity capital markets houses can no longer rely on their experience and investor contacts to win business as issuers turn a deaf ear to price discovery. Jonathan Breen reports.

The significance of cornerstones hit a new high in 2016 as a growing number of companies signed off ever larger chunks of their IPOs to this type of investor, according to ECM bankers in Hong Kong. While the practice of using cornerstones has been around for many years, ...

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