IPO Market in General Is Quite Sensitive, Says EY’s Choi

The video discusses the sensitivity of the current market to IPO pricing, highlighting how economic changes and the performance of new economy companies affect investor sentiment. It explores the impact of pricing strategies on market trends and future IPOs, using examples like ABN Bev and Alibaba. The discussion also covers Alibaba's strategic decision to list in Hong Kong, considering global trade tensions and the potential delisting risks in the US. The choice of Hong Kong is seen as a move to tap into international and Chinese mainland investors.

What factors are affecting investor sentiment in the current market?

• Stable market conditions

• Economic changes and performance of new economy companies

• High demand for traditional companies

• Increased profitability of new listings

How might companies adjust their IPO pricing strategies?

• By increasing prices regardless of market conditions

• By considering the performance of other IPOs

• By setting prices based on company size alone

• By ignoring market trends

What is a potential outcome if an IPO is priced too low?

• It will lead to immediate delisting

• It will guarantee high profitability

• It may attract more investors despite business inactivity

• It will be ignored by investors

Why is Alibaba's IPO considered important for the Hong Kong market?

• It is expected to fail

• It is a sizable IPO that could influence market rankings

• It will not affect other companies

• It is a small-scale IPO

Why did Alibaba choose Hong Kong over Shanghai for its IPO?

• To avoid international investors

• To tap into a more international market

• Because Shanghai has better regulations

• Due to a lack of options