Chinese issuers prepare ‘supercycle’ of technology IPOs


We have a shot at 12 initial public offerings this week, the busiest week of the year so far. One trend stands out: The Chinese are coming. And coming.

There are three Chinese IPOs this week. Three?"It's a case of following the money," John Fitzgibbon, founder of research firm IPO Scoop, said. "Earlier Chinese IPOs have done well and they figured there is demand here, so others keep coming.""Investors are willing to roll the dice with China," Kathleen Smith, co-founder of Renaissance Capital, told me. "Assuming you believe China is going to have positive GDP growth, China is the biggest opportunity for new companies because China is so underpenetrated in many areas."It's not a Chinese IPO flood yet, but it is sizable, and it could get a lot bigger.

Eleven so far this year, but nine have been since September. There have been about 44 IPOs since the beginning of September, so about 20 percent of the IPOs in that period have come from China.That is a lot.The good news is the average return for the nine that have gone public since November has been good: up 21.9 percent above their initial offering price.