Liu Minxia

    mllmx@msn.com

    FEWER Chinese technology, media and telecommunications (TMT) firms went public in the first half of this year, and the proceeds they raised dropped too, a recent report by PwC said.

    A total of 10 TMT firms, 29 percent fewer than a year ago, raised a total of 5.1 billion yuan (US$765 million) through initial public offerings (IPOs) in the first half of this year. The money raised was also 67 percent less compared with a year earlier.

    Among the 10 IPOs, six were launched on the Shenzhen Stock Exchange’s ChiNext board, one on the Shenzhen exchange’s SME board, two on the main board, and one on an overseas exchange.

    Financial reports released by the seven TMT companies listed in Shenzhen indicate that they saw significant growth in revenue following the listings. The average profit of these Shenzhen-listed TMT enterprises surged from 60 million yuan in the second half of last year to 250 million yuan in the first half of this year.

    With only one deal serving as an exception to the trend, the financial performance of the TMT companies listed on the main board remained stable.

    “The newly listed companies are expected to post strong financial results,” said Wilson Chow, PwC Chinese mainland and Hong Kong TMT leader. “As the government introduces a series of policies to encourage entrepreneurship and innovation, startup businesses are developing more rapidly, which is forming a solid pipeline for future IPOs.”