T.C. | The global IPO market saw 430 deals in the first three months of the year, raising $105.6 billion, up 85% and 271% year-on-year, respectively, according to EY’s Global IPO Trends Q1 2021 report. It flags how attractive market conditions have led to the best start to IPOs in the last 20 years.
By geographical regions, the United States saw 121 deals in the first quarter, raising $45 billion. It registered the highest number of transactions and proceeds in more than 20 years, surpassing the previous record in the first quarter of 2010.
The Asia-Pacific region also saw the highest IPO proceeds in 20 years, with 200 deals raising $34.3 billion. Meanwhile, after a quiet 2020, the EMEIA area (Europe, Middle East, India and Africa) saw 109 IPOs worth $26.1 billion. The increase over Q1 2020 was 179% and 646% respectively.
The technology sector was the most prominent globally, dominating in terms of both the number of IPOs (111) and proceeds ($46.1 billion). It was followed by the healthcare sector, with 78 IPOs and $14 billion. The industrial sector came in third place with 57 deals raising $6.3 billion.
“The start of the year at the European level has also been very strong thanks to high valuations, low volatility and growing confidence in an eventual economic upturn, with the technology, energy and healthcare sectors being the most active. We expect the trend to continue in the coming months; in fact, the Spanish market is also starting to register movements, with several companies with immediate and medium-term plans to go public,” explains Rosa María Orozco, partner in charge of IPOs at EY in Spain.
Paul Go, EY global IPO leader explains that “with markets awash with liquidity, global IPO deal numbers and proceeds have posted the best performance witnessed in the last 20 years. However, many uncertainties remain which will create volatility and affect the IPO markets. These include slower-than-expected vaccination programmess and new waves of the pandemic that continue to peg back any real economic recovery; the slow-down and withdrawall of IPO applications due to a tightened regulatory process; and the risk of capital markets destabilising from banks scaling back on leverage. Companies need to be well prepared to access the market while the window remains open.”
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