Wanda cutback shows weak US demand for share sales in China

Wanda Sports Group Co, a unit of Chinese billionaire Wang Jianlin’s conglomerate Dalian Wanda Group Co, downsized its initial public offering on the Nasdaq, highlighting slack demand in the US for Chinese share sales.Chinese companies have raised $2.5bn in US offerings this year, down 58% from the same period of 2018, according to data compiled by Bloomberg. In Hong Kong, the other major offshore listing hub for Chinese firms, they have raised $8.9bn, about one-third below the year-ago value.Behind the weak demand is the poor long-term performance by Chinese new shares on American exchanges. While speculators often pile in when trading starts, those who hold on to the stocks for more than six months tend to suffer.Despite an average debut rally of 17%, Chinese shares listed in the US over the last 12 months have declined on average 7.7% from their IPO prices, data compiled by Bloomberg show.Deal sizes are weighted for the average returns. It’s the opposite in Hong Kong, where Chinese IPOs rose an average 2.5% on the first day, and rallied 23% in a year from their initial offer prices.Wanda Sports reduced the high end of its fundraising target to $308mn from up to $500mn. The company, which has had partnerships with FIFA and the Chinese Basketball Association, also cut the number of shares and price range of its IPO.Alibaba Group Holding Ltd, the Chinese e-commerce giant, bypassed Hong Kong for its $25bn share sale when it took its listing to New York in 2014, at that time one of the biggest in the world. Five years on, the company is preparing for a secondary listing in Hong Kong.UPCOMING LISTINGS: Kepwealth Property Philippines (real estate developer). Philippine stock exchange Company is looking to price its IPO on August 1 ahead of offer period set for August 5-9.Tentative listing date is August 19.BDO Capital & Investment Dohome (home furnishing retailer) Thailand. Subscription period July 25 to 31. Phatra Securities, Kasikorn Securities Affle India (mobile marketing platform) offering to start on July 29, close on July 31.Aims to raise Rs900mn IPO valued at about Rs4.6bn at top end of price band ICICI Securities, cloudNomura Financial Advisory Shenzhen Chipscreen Bioscience (maker of anti-cancer drugs) Shanghai Star market.Pricing July 29. Essence Securities Amlogic (Shanghai) Co (maker of semiconductor products) Shanghai Star market. Pricing July 25.Guotai Junan Shanghai Friendess Electronic Technology (maker of laser motion control systems) Shanghai Star market. Pricing July 25.Citic Securities Wanda Sports Group Co Ltd (sports unit of Chinese conglomerate Dalian Wanda Group Co) Nasdaq. Pricing July 25.High end of deal size reduced to $308mn Morgan Stanley, Deutsche Bank, Citigroup CloudMinds Inc (Chinese cloud-based robot developer) NYSE. Filed July 12 $500mn (placeholder amount subject to change) Citigroup, JPMorgan Chase, UBS. Super Energy Power Plant Infrastructure Fund (Thai electricity producer and distributor) Thailand Subscription period July 22-31. Up to 5.15bn baht ($162mn) Bangkok Bank.More ECM situations Bloomberg is following: Anheuser-Busch InBev NV shares gained after the world’s largest brewer reported better-than-expected earnings, led by an Asia-Pacific unit that recently scrapped a planned initial public offering. Toshiba Memory is delaying plans to list on the first section of the Tokyo Stock Exchange to next year, Kyodo reports without attribution.China suspended 139 funds from investing in IPOs after money managers breached subscription rules on the country’s new trading venue for technology stocks.A global roadshow is planned for a possible IPO of Affinity Equity Partners’ 35% stake in Virgin Australia’s frequent flyer programme Velocity, worth about A$700mn, The Australian reports.Ping An Insurance’s OneConnect pre-marketing for a listing in the US has started, IFR Asia reports, citing unidentified people familiar.China Merchants Shekou Industrial Zone is said to plan REIT IPO in Hong Kong as soon as this year.