Emerging equity rally brightens IPO outlook

martes 20 de septiembre de 2016 08:07 GYT

* EM stocks up 13 pct in 2016 after 5-year lull

* India, other Asian markets primed for initial offerings

* Brazil also re-emerging but Russia slower off blocks

By Karin Strohecker

LONDON, Sept 20 (Reuters) - A stock market rally is breathing fresh life into equity capital markets across developing countries, with bankers predicting some long-awaited IPO deals will finally get off the starting blocks in coming months.

After five years of underperformance, emerging equities have rebounded 13 percent during 2016, attracting record sums from investors fleeing the low returns of other asset classes.

That has already triggered some initial public offerings (IPOs) including in India, where ICICI Prudential Life Insurance Co Ltd on Monday launched a bid to raise almost $1 billion in what will be the biggest local listing since 2010.

"The recent rally in prices clearly makes the valuations more attractive, which influences a company or its shareholders on whether to bring a company to the market," said James Roe, equity capital markets partner at law firm Allen & Overy.

But a market rout in January followed by uncertainty caused by events such as the Brexit vote have left companies wary of committing to equity fundraisings, and just over $25 billion has been raised this year via 110 emerging market IPOs, Thomson Reuters data shows.   Continuación...