DEALMAKING activity in Asia-Pacific is set to grow over the coming quarters amid a boom in markets including India, Taiwan and Japan, and a strong pipeline of transactions from China, according to Citigroup’s head of investment banking in Asia-Pacific Jan Metzger.
“We have been incredibly busy across Asia, but in particular in Taiwan and India,” Metzger said on Wednesday (Aug 28). “We have seen a huge surge of activity.”
In India, there’s a lot of demand as the country is growing quickly, Metzger said, adding that in Taiwan, new technology companies are generating fresh ways to engage with customers.
“The underlying economic activity and innovation in Asia is at an all-time high, and more exciting companies are being created than ever before,” Metzger said.
China, which has recently been more subdued in terms of deal activity, is also poised to get busier based on a strong pipeline and the creation of new unicorns, he said.
“When it does come, the next bull market run is going to be sustained long and high,” Metzger said, referring to China. That may be between six months to a year away, he added.
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The investment banker said he sees a lot of the big Chinese firms choosing Hong Kong as a listing destination, while the US is an “incredibly viable” listing location for entrepreneurs.
Citi has topped equity capital market offerings in Apac so far this year, according to data compiled by Bloomberg. The bank has played a key role on convertible bond transactions for companies including Alibaba Group Holding and Lenovo Group. It’s also one of the lead banks on the listing of Korean automaker Hyundai Motor’s Indian unit.
Another bright spot for deals has been the Middle East, and Citi has been “hugely active” helping investors looking for new kinds of technology and opportunities in sectors such as electric vehicles in China, Metzger said.
To prepare for the potential uptick in dealmaking, he said the bank is looking to increase headcount in selective markets and sectors. A Citi spokesperson confirmed that Metzger was referring to Japan and India and that the bank is positive on the healthcare, technology and consumer sectors. BLOOMBERG
