Beijing Enterprises IPO: Morgan Stanley, Peregrine
One of the most astonishing deals of the year. The offering of red-chip company Beijing Enterprises came in the frenetic lead-up to the Hong Kong handover. Demand for shares was so strong that application forms were changing hands for HK$100, and the issue closed a staggering 1,276 times oversubscribed. Demand also caused problems for the money supply of the territory: up to HK$200 billion ($26 billion) became tied up in the Hong Kong banking system. The issue raised in total HK$1.875 billion.
The stock was issued at HK$12.50 and hit a high of HK$45 during the first day's trading. A week before the issue, potential investors had to deposit their money in a special account, which generated HK$200 million in interest for Beijing Enterprises - more than half its forecast profits for 1997.
VSNL privatization: Kleinwort Benson, Jardine Fleming, Salomon Brothers
There have been several abortive attempts to privatize VSNL, India's national telecoms operator, which makes this share issue all the more of a triumph. It was the largest share offering from India and one of the biggest from Asia as a whole, raising $527 million.