H1’17: Global IPO market strongest in nearly a decade
July 6, 2017 | 12:01 am| | | Start Conversation
The global Initial Public Offering (IPO) market in the first half (H1) of 2017 was one of the strongest in nearly a decade as proceeds went up by 90percent ($83.4bn) and the number of deals increased by 70percent (772 IPOs) compared with the first half of 2016.
With 772 IPOs raising $83.4billion, H1 2017 was the most active first half of a year by global number of IPOs since H1 2007. These and other findings were published in the latest EY Global IPO Trends: Q2 2017.
The IPO activity was based on priced IPOs as of June 16 and expected IPOs by the end of June.
The Asia-Pacific region led the global IPO market in terms of volume and proceeds, accounting for 61percent (468) of IPOs worldwide and 44percent ($37bn) of global proceeds – the highest first half of a year of activity for the region since 2002.
Meanwhile, the Americas region accounting for 13percent of global IPOs (99 IPOs raising $25.8bn), was led by the US where it saw its own activity surge with proceeds swelling by 216percent.
Europe, Middle East, India & Africa (EMEIA) representing 26percent of global IPOs saw modest gains despite geopolitical uncertainties compared with its H1 2016 performance, with volume increasing by 22percent (205) and proceeds increasing by 9percent ($20.5bn) in the first half of the year.
“Economic fundamentals are improving in the major developed economies and IPO pipelines are building. Activity is underpinned by rallies in many bull markets reaching all-time highs, while investor sentiment has brightened and global outlook is positive. With the momentum of the first half, 2017 is poised to surpass 2016 global IPO levels by both number and proceeds,” said Martin Steinbach, EY Global and EY EMEIA IPO leader.
Steinbach said: “Despite geopolitical uncertainties in the first half, activity in EMEIA is increasing, representing the second most active IPO market globally. Based on a very solid reporting season and momentum from the first half of 2017, prospects are brightening in many economies buoyed by accommodative monetary policy, soaring equity indices and low volatility, all of which encourage positive investor sentiment.”
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