AI-fueled Asian share sales hit record $83B in July

Artificial intelligence-related companies in the Asia Pacific drove equity capital markets activity to an all-time monthly high in July, with initial public offerings, placements, and block trades raising more than US$83 billion — the highest ever monthly haul for firms from the region, according to data compiled by Bloomberg.finance.yahoo+1

The wave of dealmaking was led by SK Hynix ↘ 3.12%, which completed a US$26.5 billion listing on U.S. exchanges on July 10, the largest American share sale ever by a foreign company. Chinese memory chipmaker CXMT Corp followed with a 66.6 billion yuan (US$9.9 billion) Shanghai debut — China's second-largest IPO on record — with shares surging 466% on their first day of trading.reuters+4

AI Boom Powers Dealmaking Despite Market Wobble

The record burst of activity came even as AI-related stocks experienced turbulence in July, with investors questioning whether the pace of spending on data center buildout can justify elevated valuations. The MSCI Asia Pacific Index slumped as much as 7% during the month, although it has since rebounded.theedgemarkets

Optical transceiver maker Zhongji Innolight raised nearly US$7 billion in Hong Kong's largest first-time share sale in seven years, while several other Chinese AI-related companies launched fundraising rounds early in the month — though some of those deals are now trading underwater.finance.yahoo+1

"Corporate sentiment is generally high, and businesses are moving decisively to raise capital and support growth opportunities," said Phyllis Wang, head of APAC equity capital markets syndicate at Goldman Sachs The Goldman Sachs Group, Inc. ↘ 1.38%.theedgemarkets

Momentum Carries Into August

Activity has continued into August, with about US$7 billion worth of share sales already completed, led by Indian issuers. India's government raised US$3.3 billion from a stake sale in Life Insurance Corp, while hospital operator Manipal Health Enterprises rose after its US$960 million IPO.theedgemarkets

Taiwan is also showing signs of recovery after being hit hard by July's AI sell-off. BizLink Holding raised US$815 million this week from convertible bonds and global depositary shares, while ASE Technology ↘ 2.81% sold US$1 billion worth of convertibles.theedgemarkets

Pipeline Remains Full

More billion-dollar transactions are expected in the coming months. In Hong Kong, fast-fashion retailer Shein is gauging investor demand for an offering that could raise US$2 billion to US$3 billion. "Beyond the semiconductor and memory trade in Korea and Taiwan, investors are increasingly focused on China's AI infrastructure and supply chain and we believe this is only the beginning," said Cathy Zhang, head of APAC equity capital markets at Morgan Stanley ↘ 0.89%.finance.yahoo+1