Even as the 2016 IPO market lags the prior year by deal count (34 IPOs; -53%), proceeds ($5.5B raised; -58%) and filings (49 submissions; -54%), US IPO activity of China-based companies has kept pace with 2015. Including Thursday's China Online Education (51Talk) (NYSE:COE), the three Chinese companies listing in the US have raised more proceeds ($204 million) than the entire class of 2015. A look at all China ADR listings since 2012 shows general safety on the first day: Only 3 of the 28 IPOs (11%) to raise more than $40 million had a negative first-day return, compared to 25% for their non-Chinese counterparts. However, first-day pops have trended down over the past two years: The five deals since 2015 have an average first-day of +5% (compared to +13% for non-China). Ahead of 51Talk's $46 million offering, it is also worth noting that the four Chinese companies that raised less than $70 million currently trade below their offer price.
|US IPOs from Chinese Companies*|
|Year||# IPOs||Median |
|# Down on |
|Avg. First-Day |
|Avg. Total |
*Includes IPOs that raised more than $40 million