Wondering why everyone in global capital markets is thinking China these days? Look no further than PricewaterhouseCoopers’ Greater China IPO Watch. According to the accountants, the average deal size from the Greater China region (including mainland China, Hong Kong and Taiwan) was $260 million in 2005, an increase of more than 200%. For the first time, it exceeded that of the US ($170 million) and Europe ($100 million).
It’s not altogether surprising perhaps, given some of the huge privatization IPOs and the scarcity of dual listings after Sarbanes-Oxley, but the figure includes just one bank IPO so far. The US and European markets might still rule comfortably in terms of total sums raised, but ask any banker: it is deal size that matters when it comes to fees.