Asia Investment Banking Scorecard – MAY 6

Asia Investment Banking Scorecard – MAY 6, 2011

BIGGEST CHINESE IPO IN US SINCE 2009
Renren Inc, a Beijing, China-based provider of social networking internet services, raised $854.9 million in its initial public offering on the New York Stock Exchange this week, marking the biggest Chinese IPO in the United States since Shanda Games raised $1.04 billion in September 2009. Year-to-date, eight Chinese companies have listed in the United States raising $1.5 billion, more than triple the activity seen during year-to-date 2010.

Since the beginning of 2010, Chinese high technology companies have raised $1.7 billion in the US IPO market for 30% of all activity, followed by media & entertainment companies, which have raised $1.2 billion.

FINANCIALS M&A GENERATES 51% OF ASIA M&A FEES
Asia Pacific M&A imputed investment banking fees total US$1.3 billion so far this year, retained from the regional M&A deal flow valued at US$163 billion from 3384 M&A transactions, twice the amount since the low of US$783 million in the same period for 2009.

With an estimated fee pool of US$468 million (36%), North Asia accounts for the biggest portion of M&A fees, despite being down 23% over 2010's same period fee pool. This year, Financials continues to generate the highest portion of M&A fees in Asia, with over of half the slice of fees earned at US$674 million year to date.

CHINA DRIVES PHARMA ECM MOMENTUM
Shanghai Pharmaceuticals' US$2.0 billion IPO listing in Hong Kong marks a flurry of equity issuance from the healthcare sector in Asia including Kangmei Pharmaceuticals' US$525 million Follow-On earlier this year. Healthcare issuance has reached a high of US$3.7 billion in Asia ex Japan so far, with 56% from Pharmaceuticals, up 15% from the same period in 2010.

China accounts for the majority of pharmaceutical offerings at US$1.8 billion from 9 deals this year, a slight decline of 7% from the US$2 billion at this time last year.

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