China Postal Plans Large IPO

Wall Street Strategies submits:

The next time a bank owned dealer makes a pitch, part of which is the claim that a successful deal requires at least one of the leading non-independent dealers to be included, then the potential issuer could turn the conversation to Halogen Software Inc. Friday, the Ottawa-based company completed its initial public offering as well as opening trading for the day on the TSX – with only one bank-owned dealer in the syndicate.

AFP - Swiss commodities giant Glencore on Thurs

Tom Lydon submits: It’s not just LinkedIn (NYSE: LNKD), but initial public offerings (IPOs) are hot right now, as two large companies – Pandora and Groupon – are planning to offer stock to the public. The IPO related exchange traded fund (ETF) could be poised to react to this action.

A funny thing happened on the way to the initial public offering of Oryx Petroleum Corp. whose shares started trading on Thursday. The issuer, which defines itself as “an international oil exploration company focused in Africa and the Middle East,” added in a new book runner, BMO Capital Markets, meaning four firms had such a designation.

On every working day, an average of more than $1-billion is raised for Canadian governments and corporations in the capital markets both here and abroad. It is a huge business that keeps busy an army of investment bankers, lawyers, analysts, salesman, regulators as well as professionals from the issuers. It is also a financially rewarding business given the fees paid. Equity offerings can attract a 4% commission, rising to 6% for some initial public offerings. Fixed income products are less rewarding.

The China port unit of Hong Kong conglomerate Hutchison Whampoa is set to debut in Singapore on Friday but analysts warn its shares could be hit by the ongoing nuclear crisis in Japan.The initial public offering for Hutchison Port Holdings Trust, which controls deepwater ports in China and Hong Kong, is expected to raise about $6 billion, making it Southeast Asia's biggest and the world's largest so far this year.

Swiss commodities giant Glencore on Thursday announced the world's biggest initial public offering so far this year, saying it plans to enter the London and Hong Kong stock markets to raise up to $11 billion."The global offer is expected to represent between 15 and 20 percent of the company's post-IPO issued share capital," the Baar-based group said in a statement.The bid to raise between $9 billion and $11 billion (6.2 billion to 7.6 billion euros) is to be completed in May, and values the world's biggest commodities trader by revenues at up to $60 billion.