One of the highlights of 2007 in the German capital markets
was the successful IPOs (IPOs) of ZhongDe Waste Technology and
Asian Bamboo on the Prime Standard segment of the Frankfurt
Stock Exchange. These were the first two IPOs of Chinese
companies through a German holding company (referred to as
indirect listings), on the Prime Standard segment of the
Frankfurt Stock Exchange. Both of the IPOs experienced strong
demand and were oversubscribed more than 13 times at the upper
end of the price range. In the coming year, capital market
specialists at Sal Oppenheim expect up to six IPOs of Chinese
companies on the Prime Standard segment. The hard work of
Deutsche Börse and several German investment banks appears
to be bearing fruit.
Stumbling blocks There are a number of different reasons for
Chinese companies to list on a foreign market. In addition to
the internationalisation of business and the domestic...