MARKET TALK: StanChart Eyes Shanghai IPO -WSJ/THE SOURCE

9th Jul 2010 08:33

0733 GMT [Dow Jones] Standard Chartered (2888.HK) is planning a Shanghai listing. StanChart's rationale when it doesn't especially need the capital? Marketing its brand there. StanChart's May offering of Indian Depositary Receipts supports rationale; bank was first foreign company to offer IDRs, INR24.9 billion raised mere trifle vs capitalization of GBP31.9 billion. Initial investor reaction lukewarm, but it's nice to be paid to boost customer awareness. Google Insights data shows clear spike in StanChart news searches out of India in run up to and for week of offering. If that can be replicated in China then substantial marketing benefits clear. But Japan's late 1980s to early 1990s listing frenzy also instructive: when Topix reached all-time high in December 1989, 119 foreign firms were listed vs 12 today. Very few generated much revenue there and many of remaining, arguably, have little Japan presence, poor liquidity. The name of one of those that went to Tokyo? Standard Chartered, which took plunge December 1986, delisted in 1995. See: =WSJ/The Source: StanChart's Shanghai IPO: Japan Or India Redux? ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 09, 2010 03:33 ET (07:33 GMT)