Courtesy of John Nyaradi
More evidence that the world’s focus is shifting from the old nanny states of Europe and the broken “free markets” of the United States to the new “contracts” of Asian nations.
Investors are paying somewhere in the neighborhood of 24 times next year’s profits which is roughly twice the average for U.S. equities because revenues for newly listed Asian companies are forecast to increase five times as much.
According to Bloomberg, the Asian region’s share of initial offerings has increased almost sixfold since 1999, when it accounted for 12 percent of sales. Meanwhile, the amount raised by U.S. IPOs has declined 75 percent in the same span. Not surprisingly, Chinese IPOs led the increase, attracting $76 billion this year.
Record demand for initial public offerings in Asia is reducing the share of U.S. IPOs to an all- time low as companies from China to Malaysia and India flood the market with more equity than ever.
