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The global IPO business had its hottest moment second quarter in two decades in volume and revenue, and the momentum will continue for the rest of the year, according to a new EY ratio.
in middle to strong global buffer stock market momentum and ample liquidity, traditional The IPOs have arrived back in first floor in the second quarter after first it was dominated by SPAC, the British professional services giant found.
In first half of 2021, EY counted 1,070 IPOs which raised $ 222 billion in income, respective annual increases of 150% and 215%.
“Companies linked to the IPO who want to take advantage of it of favorable market sentiment and high liquidity were eager to complete their transactions before an expected half-year Slow-down, “Paolo Vai, global IPO leader at EY, he said in the report.
“Companies considering an IPO should prepare multi-pronged strategies that demonstrate resilience against geopolitics, the evolution of the COVID-19 pandemic situation, assessments and governance challenges. “
SPAC was a hot topic over the past year, but SPAC’s IPO activity in the US has followed off in the second quarter like Europe took the reins, with 21 SPAC IPO through the first half of the year.
There were 276 IPOs in all the Americas in the first half, raising $ 93.9 billion, while Asia Pacific saw 471 IPOs for total income of 74.3 billion dollars.
EMEIA (Europe, Middle East, India and Africa) region it was the fastest growing in terms of IPOIPO activity year on year, powered by a strong bull run in stock markets. There were 323 IPOs in EMEIA through the first half, raising $ 53.8 billion.
“A spectacular bull run in stock markets in H1 2021 led to quadruple the number of IPO and five times the proceeds year on year, we are starting to see a return to normal in terms of IPO business, “said EY EMEIA IPO leader Martin Steinbach.
“This is supported by positive momentum and investor sentiment, high liquidity in markets in search for returns and an improved economic perspective. Also, a merger with a SPAC is becoming an alternative path for Companies related to the IPO to go public. “
The UK also saw a fort rise in volumes and income due aup demand from past 18 months in which the country has been through elections, Brexit and the Covid-19 pandemic, EY analysts said. This led in 43 IPOs raising $ 12.7 billion, up 975% and 385% respectively year-on-year jumps.
IPO market prospect
Tech accounted for for 27% of Everyone global IPO in the first half of the year and scored a next fourth quarter in that the industry has accumulated highest number of lists, with 284 deals raising $ 90.2 billion. Healthcare reached 187 deals raising $ 33.4 billion, and industrialists saw 140 IPOs raising $ 24.3 billion.
EY analysts expect the IPO market to maintain its strong momentum in the second half in favorable means market conditions, but said there are still lingering uncertainties.
“A stable pipeline of $ 1 billion + IPO is expected through the year Included tech unicorns, SPAC and companies in sectors they have already proven resilient like technology and health care despite the COVID-19 pandemic, “the report said.
“Reverse” side, 2H 2021 May prove challenging as persistent impacts of the Covid-19 pandemic continues to affect companies in sectors most affected by national blocks – like traditional retail, travel, tourism and hospitality. If these sectors fail to recover, global the markets will continue to fall short of a full global cheap recovery. “
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