Global IPO activity on track for record-breaking year

Global IPO activity is on a strong rebound globally, with the market well on its way to smash several records, according to the latest IPO market analysis from consulting firm EY. 

On the back of a bumper third quarter (547 IPOs raising US$106.3 billion), global year-to-date IPO activity now stands at a total of 1,635 IPOs raising US$330.7 billion. Both deal volume as well as IPO proceeds are already higher than the full year numbers for 2019 and 2020.

From a sector perspective, technology, healthcare and industrials once again rose to the top of the pack retaining their firm grasp on investor attention. For the fifth consecutive quarter since Q3 2020, technology generated the highest year-to-date number of deals (419), raising the highest amount in proceeds (US$116.4 billion).

Healthcare followed with 287 IPOs raising US$49.2 billion by proceeds, and industrials came in third with 204 IPOs raising US$35.3 billion by proceeds.

From a geographic perspective, the Europe, Middle East, India and Africa (EMEIA) region has enjoyed the strongest rebound in 2021, with the number of IPOs and proceeds more than 250% higher than in corona-hit 2020. Year to date, 476 IPOs have raised US$73.7 billion so far. 

The Americas has seen 409 IPOs raise US$133.6 billion by proceeds, a 118% and 113% respective increase year-on-year. The US accounts for the large majority of activity, with 323 IPOs (a 117% increase year-on-year) so far raising US$117.3 billion by proceeds – up 110% year-on-year. 

Rachel Gerring, EY Americas IPO Leader at EY said: “To date, 2021 has already surpassed the 20-year record by both deal count and proceeds in the Americas. An accommodative market backdrop and valuations toward the upper ends of historical ranges have encouraged numerous issuers to go public. Barring substantial upsets in market backdrop and continued strong after-market performance, a slowdown in new issue activity is unlikely.”

However, there are signs that may hint at a slowdown, in particular in the Asia-Pacific region. “The region may soon experience a slowdown due to geopolitical tensions and ongoing volatility that is expected to continue,” said Gerring.

Paul Go, EY’s Global IPO Leader said: “As we head into the last quarter and market uncertainties and volatility continue to intensify, it is important to be well prepared, consider alternatives to the traditional IPO route and be realistic on valuation to ensure success.” 

The Leader of EY’s EMEIA IPO practice Martin Steinbach commented: “Looking to the end of the calendar year, speed will be critical for IPO candidates to get deals done. IPO candidates should prepare early, take all options into consideration, ensure they have the right internal talent and external resources, and strike when the time is right.”