IPO activity softens to three year low
(22 October 2019 – Global) Global initial public offering (IPO) activity in the year through to Q3 2019 totaled US$105.7 billion, marking a sharp 27 percent year-on-year decline as deal flow slumps to its slowest pace since 2016 according to Refinitiv.
Hong Kong has raised US$18.5 billion in proceeds so far, down 42.8 percent as compared with the same period last year
Although Asia-Pacific IPO activity fell 34 percent, fallout from the Hong Kong protests and the US-China trade war is lifting hopes of a rebound in deal making appetite for the region. One in two executives in the Asia-Pacific region are plotting an acquisition in the next year according to an October survey by EY. Respondents were generally more aggressive than in 2018, with half expecting their M&A pipeline to increase in 2020 compared with 43 percent in the previous October survey. IPOs in the US fell 61 percent during Q3 2019 to US$42.2 billion for the year to September 2019. EMEA IPO activity fell 43 percent from 2018. The US accounted for 35 percent of overall issuance, up slightly from the 32 percent recorded during the first nine months of 2018 and the highest annual percentage since 2013.
"Ongoing geopolitical uncertainty looks to be having a significant impact across global IPO markets. With a potential Brexit resolution on the horizon and positive signs around the Saudi Aramco IPO, we could see a bumper end to the year for listings” commented Refinitiv Analyst Lucille Jones.
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