fed-rate-cut-comes-too-late-for-asian-ipos

Fed rate cut comes too late for Asian IPOs

Changsheng and Cebu Air postpone their IPOs as Asian markets tumble. Another four deals that are due to price this week hang in the balance.

By Anette Jönsson

January 22, 2008

The surprise US Federal Reserve rate cut last night may have helped to halt the panic sell-off in financial markets, but the move came too late for some of the ongoing initial public offerings in Asia. These IPOs have been faced with rapidly declining valuations for their sector peers and investor reluctance to add to their exposures.

Asian stocks tumbled across the board yesterday, prompting two of the listing candidates to postpone their IPOs before finishing the roadshows. Sources say there could be more casualties before the end of the week unless there is a significant rebound in the secondary market.

ôPortfolio investors are looking at what they have got already and donÆt...

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