Stories
AI Fever Drives Asia Share Sales to Six-Year High, Defying Market Volatility
- •AI-fueled capital rush pushed Asia's share sales to $47.5 billion in Q3, a record for the period, bringing the year's total above $92 billion.
- •Chinese companies, including Alibaba and Zhongji Innolight, raised significant capital to fund expansion in the fast-growing AI industry, with some returning to market quickly after lockup expiry.
- •India staged a comeback with record share sales of $26 billion since July, supported by ample domestic liquidity despite a slumping Nifty 50 Index.
- •Despite a shaky market backdrop and weak deal performance, the pipeline for IPOs remains substantial across Asia-Pacific, with upcoming major listings in India, the Philippines, and Australia.
- •Investors are becoming more selective due to concerns over AI spending returns and tightening financial conditions, but a "monster amount of deals" are still expected.
Key Questions Answered
An artificial intelligence-fueled rush for capital sent share sales to a record $47.5 billion during July-September. Chinese companies raised larger sums and returned to the market more quickly to fund expansion in the fast-growing industry.
India staged a strong comeback, raising a record $26 billion from share sales since July to mark its best quarter. Major transactions included a $3.2 billion government selldown in the Life Insurance Corporation and a $2.4 billion IPO from the National Stock Exchange of India.
A surge in bond yields, poor deal performance, and a shaky market backdrop with slumping indices are testing investor appetite. Of the 10 largest deals in Hong Kong since July, only two are trading above water, making investors more selective.
