2017 global IPO outlook remains robust after promising Q1 results - Seite 2

Ringo Choi, EY Asia-Pacific IPO Leader, says:

"IPO activity in Asia-Pacific has been powering ahead due to the region's relative insulation from political uncertainty elsewhere in the world, ample liquidity in emerging markets and strengthening investor sentiment on the back of reduced volatility and steady stock market gains. While IPO activity is likely to increase on Mainland China and selected ASEAN exchanges during the second and third quarters, there may be a slowdown in new listings in other markets. Hence, this region may see a temporary drop in activity, but is expected to rebound in the final quarter of the year."

EMEIA IPO activity affected by geopolitical uncertainty

With growing geopolitical uncertainty, activity in the EMEIA region increased slightly by 8.5% YOY, ranking second behind Asia-Pacific by number of IPOs in Q1 2017, and accounting for 21% and 15% of global number of IPOs and proceeds respectively. Bolsa de Madrid, London Main and AIM, and Bombay Main Market and SME were the three most active markets by proceeds. India and the UK were the most active regional markets with 26 and 12 IPOs respectively, followed by Saudi Arabia, which listed seven deals on its new platform, "Nomu – Parallel Market," an alternative equity market with lighter listing requirements.

Steinbach says: "IPO activity in EMEIA was affected by heightened geopolitical uncertainty ahead of upcoming national elections and the build-up to the UK's declaration of Article 50, formalizing its intentions to exit the European Union. However, investor and business sentiment in EMEIA is rising as we continue to see regional equity indices at all-time highs, a growing IPO pipeline, a solid reporting season to date and strong economic fundamentals throughout the region. The key for companies looking to accelerate their growth this year while uncertainty stabilizes is to preserve optionality with a multitrack strategy approach."

US market returns to form

US IPO activity got off to a strong start in 2017, easily surpassing Q1 2016 levels in terms of both IPO numbers and proceeds. IPO proceeds for Q1 2017 are the highest since Q2 2015 (72 IPOs raising US$14.3b). The quarter saw a total of 24 IPOs raising US$10.8b, an increase of 1,380% in terms of proceeds and 200% by volume on Q1 2016. During Q1 2017, the US accounted for four of the top ten deals globally. The NYSE led IPO proceeds globally this quarter due its hosting of the only two US$1b plus megadeals.