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HONG KONG : British financial giant Prudential's proposed acquisition of AIG's Asian crown-jewel American International Assurance (AIA) has left its much-anticipated Hong Kong listing plans on hold.
But market watchers said Hong Kong's initial public offering (IPO) pipeline is still healthy and will likely exceed the US$31 billion raised last year.
AIA's listing was expected to raise up to US$15 billion, and would have been one of the biggest in the world.
Last year, Hong Kong took top spot in the global IPO markets, and some have said that the loss of AIA means Shanghai could fast catch up.
Hong Kong has not completely missed the boat. British giant Prudential said that after the AIA deal is completed in the third quarter, it intends to seek a dual listing in both London and Hong Kong. However, the size and scale of the offering is not yet known.
Ronald Arculli, chairman, Hong Kong Exchanges and Clearing, said: "The amount, of course, will have a big impact. The expectation was for a HK$100 billion to HK$200 billion listing. But do not discount that if the new deal goes through, the new AIA entity could also list here; it won't come as a surprise."
Even without the new Prudential-AIA entity, the Hong Kong Exchange remains the trading centre for some of China's biggest listed companies outside of the mainland.
About 60 companies are lined-up to raise over US$30 billion, with the biggest being Agricultural Bank of China - the last of China's big four banks to go public.
It is planning a US$15 billion dual-listing in Hong Kong and Shanghai, as early as the first half.
The IPO scene is also becoming less China-centric.
Louis Wong, director, Phillip Securities, said: "The Hong Kong Exchange is looking more outwards recently. So, we have got Russian IPO Rusal, and it is expected that other Russian companies are planning to list in Hong Kong. And we also see some cases where companies listed on the Singapore Exchange are applying for a secondary listing here."
Property developer Swire Pacific is also planning to raise about US$3 billion and will be using funds to fund property investments and pay debt.
On the flip side, recent market conditions have caused some companies to rethink their listing plans.
These include Wilmar International, the world's biggest palm-oil trader, which has delayed plans for a Hong Kong listing of its China assets. - CNA/ms
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