Chinese companies are rushing to go public in the red-hot IPO market in the US and more Chinese startups remain intent on listing in New York, according to a report by CNBC.
The US initial public offering witnessed the busiest quarter since 2000 in the first three months of this year, according to consulting firm FY.
"Our phone is ringing off the hook. We're trying to hire more people. We haven't seen anything like this since the Nasdaq bubble in '99," said Gary Dvorchak, managing director of Buleshirt, an industrial leader providing IPO advisory, investor relations and other financial services.
About half of 36 foreign public listings in the US during that time came from companies based in China, EY said.
Around 60 Chinese companies plan to go public in the US this year, said Vera Yang, chief China representative for the New York Stock Exchange.
As money steadily entering the market since the pandemic, about 30 China-based companies raised the most capital in the US last year since 2014, according to Renaissance Capital.
For Chinese startups, investors and businesses are looking to cash in and delisting concerns have calmed down since President Joe Biden took office in January, the report said, citing Blueshirt managing director Gary Dvorchak.
Rather than spreading out their bets, the investors pile into just a few of the same companies this year in China, home to many of the world's so-called unicorns — or startups valued at $1 billion or more.
Technology, media and telecommunications is the first area of interest among Chinese-based business listing in the US this year, followed by consumer brands and business services, said Yang.
(Source: China Daily)