The EY Global IPO Trends report for the first quarter of 2020 noted how global IPO activity dropped dramatically in March, due to the pandemic. So the report considers IPO activity would not improve “at the earliest” until the second half of 2020. And it seems to have hit the mark, with the Dutch company Jacobs Douwe Egberts (JDE), the world’s second largest coffee producer started trading last week. It is the first major IPO of 2020, raising a total of €2.25 billion.
E-Toro | Saudi Arabia’s state-owned oil company, Saudi Aramco will be listed on the Saudi Stock Exchange (Tadawul) later this week on December 11th. Furthermore, the oil company is expected to price its initial public offering Thursday at the high end of the targeted range to give the oil giant a total value of $1.7 Tr. This would be the world’s biggest-ever IPO. These are the pros and cons we found about the firm.
Pablo Pardo (Washington) | The last two decades have not been too good for the idea that companies should list in the stock market. Above all since 2008, the overabundance of practically free capital has allowed many companies to ignore equity markets. Until 2019 arrived and things changed.
Baker McKenzie | There were no flotations in Spain in the first half of 2019, consolidating the progressive decline in these operations since 2017.
By Yang Ge via Caixin | Offshore listings by Chinese firms surged to record highs in 2018, fueled by strong demand from global investors chasing some of China’s hottest names, especially in the technology sector. That listing wave is expected to continue into 2019, but could quickly peter out if recent bearish sentiment becomes the norm, observers said.
Alphavalue | Inflows from IPOs in European stock markets reached $35 bn, or what is the same, -37% compared to last year which makes this 2018 the worst year for IPOs since 2013, only surpassed by fateful 2016.
Cepsa’s single shareholder, Mubadala (Abu Dhabi Sovereign Fund), expects to raise up to 2.019 billion euros for the capital of the oil company put up for sale, which implies a value for the company in the range of 7.010 – 8.085 billion euros (more than 11.2 billion euros if the debt is included).
Cepsa will be launched onto the stock market in the last quarter of the year through an IPO. Valuations are being discussed in the range of 10 or 11 billion euros for 100% of the company. The Abu Dhabi sovereign fund (IPIC) bought 100% of Cepsa in 2011. At that stage Cepsa was listed in the stock market for approximately 7.5 billion euros.
The first half of 2018 has witnessed a dip in global IPO activity as a result of lower capital raising in Asia Pacific and EMEA, according to the latest research from Baker McKenzie. Worries around geopolitics weighed on investors’ minds. However, cross-border deals totalled over $16.6 Bn. The number of deals climbed, up 18% to 85.
Shares in Siemens health division, Healthineers, made their stock market debut last Friday (delayed due to technical problems) at 28 euros each, closing at 30,20 euros, implying a revaluation of close to 8%. They are trading at 32,04 euros/share today, Wednesday.