Muted Asia-Pacific IPO activity lifted by Shanghai’s STAR Market
In Asia-Pacific, YTD 2019 IPO volume was down 9% (436 IPOs) and proceeds decreased by 27% (US$46.1b) compared to the same period in 2018.
The launch of Shanghai’s STAR Market offset more muted activities in Hong Kong, Japan and Australia in Q3 2019, with Asia-Pacific exchanges seeing a decline of 2% by deal volumes (173 IPOs) and 29% by proceeds (US$23.7b) in Q3 2019 compared to Q3 2018. However, ongoing trade tensions between China and the US continue to impact IPO activity across parts of the region.
Still, Asia-Pacific continued to dominate global IPO activity in Q3 2019, representing seven of the top 10 exchanges by volumes and five of the top 10 exchanges by proceeds. Average first-day returns for IPOs on Asia-Pacific’s main markets rose to 51%, while average current returns soared to 71%, predominantly because of Shanghai’s STAR Market activity.
Ringo Choi EY Asia-Pacific IPO Leader, highlights that: The much-anticipated debut of Shanghai’s STAR Market in Q3 2019 did not disappoint as initial activity on the new exchange overshadowed more muted performance in other Asia-Pacific regions.”