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Global IPO trends: Q2 2019

Companies wanting to go public are either waiting for geopolitical uncertainities to pass or going public regardless.

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Global IPO market shows continued signs of slowdown in Q2 2019 despite unicorns coming to the market

The trend of unicorn IPOs coming to market and pushing their proceeds to historic levels continued in Q2 2019 despite ongoing geopolitical uncertainty and trade tensions, resulting in 507 IPOs in H1 2019, raising total proceeds of US$71.9b. This is a 41% decrease in deals and a 74% decrease in proceeds from YTD 2018.

While deal numbers were down 28% from H1 2018, first-day returns on the main markets were up 15.4% on average and post-IPO performance increased 28.4%. Technology, health care and industrials saw the largest share of IPOs in H1 2019, together accounting for 266 IPOs (52% of global IPOs by deal numbers) and raising US$47.8b altogether (66% of global proceeds).

Asia-Pacific IPO plans accelerated to get ahead of economic headwinds

Ongoing trade tensions between China and the US continued to impact IPO activity in YTD 2019, inhibiting a return to 2018 levels. IPO activity across the Asia-Pacific region in YTD 2019 was down 12% by volume (266 IPOs) and 27% by proceeds (US$22.3b), compared with YTD 2018.

However, Asia-Pacific continued to dominate global IPO activity YTD 2019, by volumes, representing six of the top ten exchanges. By proceeds, the region accounted for three of the top ten exchanges. Asia-Pacific’s main markets experienced average first-day returns of around 19% and average current returns of 34%, illustrating that IPO performance continues to elevate IPO investor sentiment.

Asean exchanges saw a total of 48 IPOs, raising US$2.0b in proceeds in YTD 2019, posting a slight decline (8%) in deal volume, with proceeds notably lower (a 55% decline), compared to H1 2018. During the period, Indonesia Stock Exchange (IDX) saw the highest deal numbers, accounting for 35% of deal volume and 10% by proceeds in the region, while the Singapore Exchange (SGX) led by proceeds; its main and junior markets together accounted for 61% of Asean proceeds and 17% by deal number.

In Q2 2019, Asean saw a notable increase in deal numbers (29 IPOs, a 53% rise) over Q1 2019 and a significant boost in proceeds (US$1.7b, a 447% rise), suggesting some signs of market recovery. The SGX ranked tenth among global exchanges by proceeds for Q2 2019 due to two sizeable real estate investment trust IPOs.

About this report

The EY Global IPO Trends report is released every quarter and looks at the IPO markets, trends and outlook for the Americas, Asia-Pacific, Japan and EMEIA regions.

The report provides insights, facts and figures on the 2019 IPO market year-to-date and analyzes the implications for companies planning to go public in the short and medium term.