Sunday, October 2, 2022

Global IPOs slow in the third quarter after the start of Frenetic 2021

Initial public offerings (IPOs) globally slowed from its previous frenetic pace in the third quarter of 2021, according to Refinitiv data, but the number of listings in the first nine months of the year was still the highest since the dotcom bubble of 2000 .

IPOs in the third quarter raised a total of $94.6 billion, down 26.3 percent from the second quarter, as activity cooled due to a summer slowdown and US investigations of Chinese listings. .

More than 2,000 IPOs have raised a combined $421 billion year-over-year globally, a record high, as private companies rush to garner the rising valuations of their publicly listed peers. This was more than double the income raised during the same period last year.

This number includes the IPOs of 486 special purpose acquisition companies (SPACs) that went public in the first nine months of the year, raising a total of $127.7 billion.

“After record levels of SPAC IPO activity in the first quarter, that market has taken a necessary pause. However, we are seeing early signs of the market returning to normal and opening up to the right issuers,” said David Ludwig, global head of equity capital markets at Goldman Sachs Group Inc.

Trading app Robinhood Markets Inc. in the high-profile IPO of the third quarter. of $2.1 billion listing in New York and South Korean software company Crafton Inc. raised more than $3.7 billion on the Korean Stock Exchange.

The biggest IPO so far this year was by Tencent-backed Chinese online video company Kuaishou Technology Co. Ltd has an offer of $5.4 billion.

In July, US Securities and Exchange Commission Chairman Gary Gensler called for a “pause” in US IPOs of Chinese companies and called for greater transparency in China about their offshore structures and the regulatory risks they face. Chinese listings in the United States came to a standstill as a result. In the first seven months of 2020, Chinese listings reached a record $12.8 billion.

Tech listings remained a favorite of investors despite valuations being scrutinized more closely. But a large mix of sectors were among the stock market debutants. In Europe, Taylor Swift’s record label Universal made a much-anticipated debut on the Amsterdam market, becoming the most valuable company to be listed on the continent this year.

Volvo Cars is also expected to launch an IPO, while Daimler is expected to list its truck unit to diversify the offering for stock market investors.

Ludwig said IPO activity could pick up in the fourth quarter. “The backlog (of IPOs) across sectors and regions is very strong,” he said.

By Iko Wang and Abhinav Ramnarayan



This News Originally From – The Epoch Times

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