Companies from Asia Raise $2.5 Billion

Global Finance, Sep 2004

ASIA

The amount of capital raised through depositary receipts rose to $2.5 billion in the first half of 2004, with all of the activity in the Asia-Pacific region, according to Citigroup. This year's first-half total was up 502% from the first half of 2003.

"The increase was so large in part because the base was so low," says Sanjeev Nanavati, head of Citigroup's DR services. Markets last year were suppressed by the SARS virus crisis in Asia and global uncertainty.

Capital-raising activity picked up in the second half of 2003, with emphasis on Asian companies in the technology and telecommunications sectors.

"Overall, the continued momentum in capital raisings for Asian companies represents a trend that's going to continue," Nanavati says.

Some 56% of the capital raised in the first six months of this year came from Citigroup DR programs, including AU Optronics, HannStar Display, United Microelectronics, Macronix International and Chunghwa Picture Tubes, which are all based in Taiwan. Other Citigroup programs that raised funds included Hong Kong-based Tom Online and Associated Cement of India.

China-based Semiconductor Manufacturing International raised $475 million and led all companies in capital raised in the first half of 2004, followed by HannStar Display's $302 million.

There was a 42% increase in -worldwide DR trading volume in the first half of 2004.