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Asia's IPO Fever Comes as No Surprise: Expert

The incessant appetite for Asian IPOs does not come as a surprise, said Alan Lok, director of Sabio Global on CNBC, especially with the huge influx of funds from the United States.

The U.S. "lacks investment opportunities," he said, noting that investors would always be drawn to companies with good value and liquidity.

Lok said most of the recent Asian offerings were a "fundamental play", and were "on the low side" judging by their price-to-book (PB) and price earnings (PE) ratios.

Singapore's Global Logistic Properties (GLP) drew huge intereston Monday, surging more than 10 percent in its debut. The stock added a further 3 percent on Tuesday.

Lok suggested investors look at a company's PB value for a "good gauge" of a firm's value when deciding where to invest.

The other indicators were market capitalization and the specific industry, especially "attractive" ones which were "growing", he said.

These include China's property sector, which Lok feels is still powered by strong demand despite the government's tightening measures.

"With the kind of market we are seeing now, where raw material prices are actually coming down, I think property developers would have a very good hand in it, higher prices but stabilizing costs," he said.

The logistics sector was also another attractive sector, "with a fair bit of upside" and "very low downside", Lok added.

He said the logistics business has been a "very stable" industry throughout the recession and was a good way to gain exposure to China, especially the larger-sized companies, he said.

"Big players like GLP should be able to get a very huge chunk of the pie."