Clifford Chance

Market trends in cornerstone investment

23 August 2012

Cornerstone investors have become a regular feature of Asian IPOs over recent years. Cornerstone investors are usually sovereign wealth funds, institutional investors or, in the case of Hong Kong, local tycoons. They are important not only because they guarantee that a proportion of the offer will be sold but also because they stimulate investor demand and, for some investors, lend credibility to the company that is proposing to IPO. They are particularly important when investor confidence is at a low ebb and equity markets are volatile.

Download PDF