4 minute read 30 Sep 2021
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IPO Q3 2021: Global IPO activity so far this year exceeds full year 2020

By Paul Go

EY Global IPO Leader; Asia-Pacific EY Private Assurance Leader

Leads Chinese and multinational companies in client servicing domain. Heads Hong Kong real estate, hospitality and construction sector audit group.

4 minute read 30 Sep 2021

The global IPO market continued to boom in Q3, resulting in the most active third quarter in the last 20 years. 

In brief
  • Global IPO volumes rose 87% and proceeds rose 99% year-on-year.
  • A key driver of activity in Q3 was the rebound of the IPO markets in Europe, Middle East, India and Africa (EMEIA).
  • Technology, health care and industrials once again dominated.

As we near the end of 2021, a few uncertainties lie ahead that could increase market volatility and challenges for a successful IPO. 

In the meantime, companies should be looking to make the most of the favorable market conditions and go public. 

We expect a steady pipeline of deals. However, a host of uncertainties remain: geopolitical tensions, regulatory changes in flux, inflation risks and tapering by the US Federal Reserve. At the same time, new variants of the COVID-19 pandemic are disrupting a full global economic recovery, and most sectors are affected.

Serious IPO candidates should look to prepare themselves as early as possible and be ready to launch quickly, if needed. 

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Liquidity fueled record IPO markets in Q3 2021

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  • Data definitions for all charts

    The data presented on this webpage and in the EY Global IPO press release: Q3 2021 is from Dealogic and EY. Q3 2021 (i.e., July–September) and YTD 2021 (January-September) are based on completed IPOs as of 21 September 2021 and expected IPOs in June (i.e., expected to start trading by 30 September). Data is up to COB 21 September.

    • In compiling the IPO statistics included in these reports and press releases, we focus only on IPOs of operating companies and define an IPO as a ‘company's offering of equity to the public on a new stock exchange’.  
    • This report includes only those IPOs for which Dealogic and EY teams offer data regarding the first trade date (the first day on which the security start trading on a stock exchange), and proceeds (funds raised, including any over-allotment sold). 
    • The first trade date determines which quarter a deal is attributed to. Postponed IPOs, or those that have not yet been priced, are therefore excluded. Over-the-counter (OTC) listings are also excluded.
    • In an attempt to exclude non-operating company IPOs such as trusts, funds and special purpose acquisition companies (SPACs), companies with the following Standard Industrial Classification (SIC) codes are excluded:
      • 6091: Financial companies that conduct trust, fiduciary and custody activities.
      • 6371: Asset management companies such as health and welfare funds, pension funds and their third-party administration as well as other financial vehicles.
      • 6722: Companies that are open-end investment funds.
      • 6726: Companies that are other financial vehicles.
      • 6732: Companies that are grant-making foundations.
      • 6733: Asset management companies that deal with trusts, estates and agency accounts.
      • 6799: Special purpose acquisition companies (SPACs).
  • Definitions for IPO performance by geography

    • Africa includes Algeria, Botswana, Egypt, Ghana, Kenya, Madagascar, Malawi, Morocco, Namibia, Rwanda, South Africa, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe.
    • Americas includes Argentina, Bermuda, Brazil, Canada, Chile, Colombia, Ecuador, Jamaica, Mexico, Peru, Puerto Rico and the United States.
    • Asean includes Brunei, Cambodia, Guam, Indonesia, Laos, Malaysia, Maldives, Myanmar, North Mariana Islands, Philippines, Singapore, Sri Lanka, Thailand and Vietnam.
    • Asia-Pacific includes Asean (listed above), Greater China (as stated below), Japan, South Korea as well as Australia, New Zealand, Fiji and Papua New Guinea.
    • EMEIA includes Armenia, Austria, Bangladesh, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, India, Ireland, Isle of Man, Italy, Kazakhstan, Luxembourg, Lithuania, Netherlands, Norway, Pakistan, Poland, Portugal, Russian Federation, Spain, Sweden, Switzerland, Turkey, Ukraine and United Kingdom plus the Middle East countries (listed below) and Africa countries (listed above)
    • Greater China includes Mainland China, Hong Kong, Macau and Taiwan.
    • Middle East includes Bahrain, Iran, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates and Yemen.
  • Definitions for IPO deals — top stock exchanges

    We have used data from the main market and the junior market if applicable. The labels on the horizontal axis are the stock exchange tickers (see below for their full names):

    Asia-Pacific

    • ASX: Australian Securities Exchange
    • HKEx: Hong Kong Stock Exchange Main Board and its junior market, Growth Enterprise Markets (GEM)
    • KRX: Korea Stock Exchange and its junior market, KOSDAQ
    • SSE: Shanghai Stock Exchange and Science and Technology Innovation Board (STAR)
    • SZSE: Shenzhen Stock Exchange and junior market ChiNext
    • TSE: Tokyo Stock Exchange Main Market and junior markets, MOTHERS and JASDAQ

    Europe, Middle East, India and Africa

    • FSE: Deutsche Börse Main Market and junior market, Scale
    • Euronext: Euronext (Amsterdam, Brussels, Lisbon, Paris) and junior market Alternext (Amsterdam, Brussels, Lisbon and Paris)
    • Indian: India’s National Stock Exchange and junior market, Small and Medium Enterprise (SME) board and Bombay Stock Exchange and junior market SME board
    • LSE: London Main Market and junior market, Alternative Investment Market (AIM)
    • NASDAQ OMX: NASDAQ OMX Nordics Main Market and junior market, First North, based in Copenhagen, Helsinki, Stockholm and Riga
    • OB: Oslo Bors and junior market, Oslo Axess
    • TASE: Israel’s Tel Aviv Stock Exchange

    Americas

    • NASDAQ: US’s National Association of Securities Dealers Automated Quotations exchange
    • NYSE: US’s New York Stock Exchange
    • B3: Sao Paulo Stock Exchange
  • Definitions for IPO deals by sector and IPO proceeds by sector

    Sectors are classified according to Thomson general industries using a company’s Sector Industry Classification (SIC) code. There are 11 sectors, which are defined below with their specific industries. The 11 sectors are shown on the horizontal axis.

    • Consumer: the combination of “Consumer staples” and “Consumer products and services” sectors. Its specific industries include: agriculture and livestock, food and beverage, household and personal products, textiles and apparel, tobacco, educational services, employment services, home furnishings, legal services, other consumer products, professional services, as well as travel services. 
    • Energy: includes the following specific industries: alternative energy sources, oil and gas, other energy and power, petrochemicals, pipelines, power, as well as water and waste management.
    • Financials: includes the following specific industries: asset management, banks, brokerage, credit institutions, diversified financials, government sponsored enterprises, insurance, as well as other financials.
    • Health care: includes the following specific industries: biotechnology, health care equipment and supplies, health care providers and services (HMOs), hospitals, as well as pharmaceuticals.
    • Industrials: includes the following specific industries: aerospace and defense, automobiles and components, building/construction and engineering, machinery, other industrials, transportation, as well as infrastructure.
    • Materials: includes the following specific industries: chemicals, construction materials, containers and packaging, metals and mining, other materials, as well as paper and forest products.
    • Media and Entertainment: includes the following specific industries: advertising and marketing, broadcasting, cable, casino and gaming, hotels and lodging, motion pictures or audio visual, other media and entertainment, publishing, as well as recreation and leisure.
    • Real estate: includes the following specific industries: non-residential, other real estate, real estate management and development, as well as residential.
    • Retail: includes the following specific industries: apparel retailing, automotive retailing, computers and electronics retailing, discount and department store retailing, food and beverage retailing, home improvement retailing, internet and catalog retailing, as well as other retailing.
    • Technology: includes the following specific industries: computers and peripherals, electronics, internet software and services, IT consulting and services, other high technology, semiconductors, as well as software.
    • Telecommunications: includes the following specific industries: other telecom, space and satellites, telecommunications equipment, telecommunications services, as well as wireless.

Previous IPO reports

Summary

In Q3 2021, third quarter IPO deal numbers and proceeds were the highest in 20 years. A key driver was the rebound of the EMEIA IPO markets, and a rush of IPO candidates seeing to raise capital before expected tapering begins.

About this article

By Paul Go

EY Global IPO Leader; Asia-Pacific EY Private Assurance Leader

Leads Chinese and multinational companies in client servicing domain. Heads Hong Kong real estate, hospitality and construction sector audit group.