Taking cover from falling stocks

Pre-IPO trading


Credit problems in the US and an increase in equity volatility worldwide have not dampened activity in the lucrative, multi-billion-dollar business for pre-initial public offering (IPO) trades in Asia. But awareness that the region's stock markets may be overheated, particularly in India and China, is prompting pre-IPO investors to increase their equity demands and ramp up hedging activities in anticipation of a potential downturn.

"The business of pre-IPOs in Asia is still going strong; we're se