Bankers Bet on Japan and India: IPO Wave Sweeps Across Asia-Pacific

Bankers are betting on over 6 billion USD in initial public offerings (IPOs) this week in Japan and India, as these markets gain increasing significance. The ongoing decline in activities in China has prompted investment banks to explore new revenue sources and shift their focus more towards Japan and India. The announced IPOs of the Indian Hyundai Motor unit, the Japanese subway operator Tokyo Metro, and the X-ray technology company Rigaku Holdings bring IPO volumes in the Asia-Pacific region (excluding China) to over 28 billion USD, a significant increase compared to the 23.7 billion USD of the previous year. In China, stock exchanges have dropped to slightly more than 20 billion USD due to stricter regulations and economic concerns. India is benefiting significantly from investor doubts about China, with over 9 billion USD in new IPOs last year. According to Rahul Saraf from Citigroup, the mature corporate sector and stable political environment in India have created an optimal framework for IPOs. Hyundai Motor India plans this month's largest IPO in the country with 3.3 billion USD. Institutional investors like BlackRock and Singapore's sovereign wealth fund have already expressed interest. However, the active market in India raises questions about possible overheating. Regulators have already responded to irregularities such as financial data manipulation and price settings to strengthen trust in the capital market. In Japan, Tokyo Metro is aiming for the largest listing in six years with a planned IPO of up to 2.3 billion USD. Rigaku is also targeting a successful listing on the Tokyo Stock Exchange with 730 million USD. International investors have already shown significant interest in these new stock offerings. The attractiveness of the Japanese market is fueled by increased investments and greater efforts to improve shareholder returns and eliminate cross-shareholdings. The upcoming listings of Hyundai Motor India, Tokyo Metro, and Rigaku are seen as a barometer for future IPOs.