Goldman Sachs and Morgan Stanley cash in on Chinese IPO’s
Goldman Sachs and Morgan Stanley have benefited from another wave of fees as China?s largest listed companies tap stock markets again.
Goldman Sachs has recently raked in $55 million in fees, $29 million of which was from IPOs and $26 million from follow on share sales, according to Dealogic. Morgan Stanley collected $50 million; of that $27 million was for IPOs and $23 million for subsequent share issuances.
The two firms collected 57% of the $86 million in total fees reports Dealogic.
Morgan Stanley helped China Telecom sell $1.7 billion worth of shares in May. It also arranged BP?s $744 million sale of Sinopec Corporation shares in February.
Goldman Sachs worked on Bank of China?s $1.9 billion sale of shares in its overseas flagship BOC Hong Kong in December, as well as BP?s $1.7 billion sale of its Petrochina stake in January and Royal Dutch/Shell Group?s $742 million sale of Sinopec shares in March.
The two firms are well positioned for the future, especially as the Chinese market is expected to produce an additional $26 billion in overseas IPOs this year.