AI boom lifts Asia-Pacific equity deals

The Express Tribune reported that Asia-Pacific companies could top their 2021 peak for combined share and convertible issuance this year, as artificial intelligence spending on semiconductors, data centres and energy infrastructure accelerates. LSEG figures show regional equity deals reached $327.1 billion through September, a rise of 53% on the prior year, with follow-ons and convertibles outpacing IPOs. The 2021 full-year peak of $557.6 billion compares with $399.7 billion raised by late September that year.

James Wang of Goldman Sachs expects full-year issuance to overtake 2021, with AI driving volumes for another one to two years. Clearing the 2021 mark would need $230.6 billion in the last quarter alone, a quarterly record in itself, and bankers anticipate additional share and convertible offerings. Firmus, DayOne and Yangtze Memory Technologies Co, the Australian, Singaporean and Chinese issuers in the pipeline, could each raise roughly $5 billion.

Dealogic figures put Asia-Pacific IPOs and new listings due by year-end at $10.4 billion, including Mynt's Philippine listing worth $1.3 billion and a $2.2 billion Samsung Biologics rights offering. High-technology issuers raised $125.8 billion, representing 38% of the total and more than three times the level of a year earlier. Kenneth Chow of Citigroup described some signs of investor caution after the heavy deal flow, though issuers can still raise money if pricing is more favourable than a few months ago.