Global IPO momentum continues record-breaking pace through 1H 2021

HOT initial public offering (IPO) momentum from 1Q 2021 continued into 2Q 2021, resulting in the most active 2Q 2021 by deal numbers and proceeds in the last 20 years.

In the latest findings of the EY Global IPO trends report, 1Q 2021 was dominated by IPOs of special purpose acquisition companies (SPAC) with traditional IPOs stepping back into the spotlight in 2Q 2021, boosted by ample liquidity in the financial systems and strong global equity market performance, among others.

“Through 1H 2021 there was a total of 1,070 IPOs, raising US$222 bil in proceeds, increasing 150% and 215% year-on-year (yoy) respectively,” the report showed. “Markets in the Asia-Pacific region maintained momentum through 1H 2021, seeing the highest proceeds for 1H 2020 in more than 20 years.”

Overall IPO volume resulted in 471 IPOs which raised US$74.3 bil by proceeds, a 76% and 108% yoy increase respectively. Technology continues to lead the sectors by both volume (99 IPOs) and proceeds (US$25.1 bil).

Greater China continued at a positive pace through 1H 2021, seeing 293 IPOs raising US$60.3 bil by proceeds. Mega IPOs played a key role in Greater China with five of the top 10 global IPOs launched on Greater Chinese exchanges.

Despite new waves of the COVID-19 pandemic in Japan, the EY Global IPO trends report said the country saw 1H 2021 IPO numbers rising 59% to 54 deals, raising US$3 bil by proceeds.

South Korea posted two mega IPOs in 1H 2021, including the fifth largest IPO globally in 2Q 2021 by proceeds which raised US$2 bil.

Meanwhile, ASEAN’s exchanges remained steady in 1H 2021 by recording a total of 54 deals which raised US$5.1 bil compared to 44 deals which raised US$3.2 bil over the same period in 2020.

In proceeds, Thailand’s exchanges led with 15 deals raising US$2.9 bil followed by the Philippines which saw two deals raising US$1.3 bil.

“Indonesia posted the largest number of IPOs with 22 deals raising US$500 mil while exchanges in Malaysia and Singapore saw 12 deals raising US$100 mil and three deals raising US$240 mil respectively.

“ASEAN had a respectable IPO showing in 1H 2021, recording the best first-half result over the past few years where we saw 44 IPOs raising US$3.2 bil in 2020 and 40 IPOs raising US$1.9 bil in 2019,” commented EY’s ASEAN IPO leader Max Loh.

“In spite of the ongoing COVID-19 pandemic which continues to ravage economies, ASEAN’s corporates are showing optimism and confidence in the region’s ultimate economic recovery and leveraging the capital markets for growth and emerging digital opportunities.”

This momentum is expected to hold steady going into 2H 2021, led by Thailand and Indonesia. The introduction of ASEAN SPACs into the mix may well provide the ballast for more public listings going forward, added Loh. – July 23, 2021

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