initial public offerings (IPOs) trading on American exchanges

Sunday, December 15, 2013

2014 to be a record year for global IPOs

 Global IPO activity should remain on a firm footing in Q1’14, following a strong uptick in listings in the last quarter of 2013 to close the year with a total of 864 deals raising around US$163.0b, according to EY Global IPO Trends: Q4 2013. Increased investor confidence and better market fundamentals will support a solid start to 2014 for new offerings.

US exchanges led global IPO activity with 222 IPOs raising US$59.6b (which accounts for 26% by global deal number and 37% by global capital raised) in 2013. This is 67% higher by deal number and 28% rise by capital raised compared to 133 IPOs which raised US$46.7b in 2012.

Health care was the leading sector in 2013 by deal volume with 49 IPOs raising US$8.8b. Real estate offerings also attracted significant investor interest – driven by a combination of low interest rates and the high yields on offer – resulting in 22 IPOs raising US$6.0b. Technology is another sector to watch – 2013 saw 39 IPOs which raised $US7.4b in total, bolstered by the Twitter listing, which is likely to renew investors’ interest in technology companies, according to Ernst & Young Global Limited.

The total number of IPOs in Asia in 2013 is expected to reach 347 compared to 414 in the previous 12 months. Proceeds are also down with US$44.4b raised, compared to US$56.2b in the region in 2012, due to the suspension of IPO activity in China through 2013.

Europe saw 157 IPOs raising US30.3b in 2013, more than double the proceeds of 2012. Notably deal volume dipped slightly by 4% year-on-year, highlighting the rise of larger offerings in 2013. The financial services, consumer products, real estate and industrials sectors led by capital raised and, companies looking to list over the next 12-18 months will also come from a very broad cross-section of industries.

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