(Yicai Global) Sept. 13 -- The decline in the number of initial public offerings by companies in the technology, media and telecommunications sectors in the first half of this year is temporary, insiders say.
Ten companies floated in the six months through June, raising a total CNY5.1 billion (USD764 million). That represented a 29 percent drop in the number from a year earlier, and a 67 percent plunge in value.
TMT has many sub-industries and is difficult to generalize, Mr. Zhou Weiran, a managing partner at PricewaterhouseCoopers LLP, told Yicai Global. Film and film-related companies, for example, are very popular among investors and are expected to drive TMT IPOs going forward.
Company listings were down across the board in the first half. According to figures from PwC, just 61 companies listed on the mainland A-share market compared with 187 a year earlier. They raised almost CNY28.8 billion compared with CNY146.14 billion a year earlier.
Mr. Zhou said the fewer numbers of IPOs is due to a limited number of approvals after China started to allow floatations again in November after last summer's stock market crash. Regulators have also set a new requirement that an IPO valuation cannot exceed 23 times the price-to-earnings ratio.