NetDimensions, a HK-based company specialised in learning management software and recently featured in EngagingChina, plans to become the latest China play to list on AIM, London's junior market.
According to the Daily Telegraph, the company chose London over Nasdaq because AIM's listing requirements are much less onerous than those of Nasdaq, even though NetDimensions gets twice as much revenue from the US market as from Europe.
More than 50 Chinese companies are now listed on AIM, with several more on the main LSE market. By contrast, the NYSE has just 24, the latest being Tongjitang Chinese Medicines Company which listed last month.
Xinhua reports on how the west's exchanges are beating a path to China to attract fast-growing IPO business from Chinese firms. In 2005, 81 Chinese companies raised just over $20bn from overseas IPOs, while in 2006, the amount raised, by 86 firms, more than doubled to $44bn, accounting for 19% of the world total.
The attractiveness of US exchanges for small Asian companies seeking an IPO in the west has diminished because of the perception that getting and maintaining a US listing is costly and time-consuming. By contrast, the ease with which Chinese start-ups with little track record can can list on London's AIM has led critics to dub it the "Wild West" exchange.
EngagingChina wrote about NetDimensions here and about the attractions of London's AIM market here and here.
Elsewhere on the investment front:
-
Deutsche Boerse, the company behind the Frankfurt Stock Exchange, has signed a partnership agreement with Tianjin Property Rights Exchange, a trading platform created to help privatise state-owned companies. DB already has similar agreement with China Securities, a JV between the Shanghai and Shenzhen exchanges. Last month, Gongyou Machines Ltd became the first Chinese company to benefit from this new spirit of rapprochement and obtain a listing in Germany. More on the TPRE here.
- In another sign of the opening of China's stock exchanges, the Shanghai Stock Exchange is considering taking a leaf out of the book of western exchanges by seeking its own listing. The move could pave the way to Shanghai buying its smaller rival Shenzhen Stock Exchange, argues the Financial Times ($)
- Beijing-based China Citic Bank is seeking to raise up to $5.7bn from a simultaneous IPO in HK and Shanghai, making it the largest public offering so far this year. Citic is the latest in a growing line of mainland banks looking to raise their profile with international investors through a HK listing. Spain's BBVA has a 5% stake in Citic Bank and plans to buy new shares to keep its holding at similar level. Citic Bank is 80% owned by Citic, China's state holding company.
