Global IPOs fall to three-year low during first nine months of 2019

18 Oct
Global IPOs fall to three-year low
  • Debut listings of Global IPOs fell by 27% globally led by a 43% decline in EMEA and a 34% fall in Asia Pacific
  • Proceeds raised by US companies going public increased 28% year-on-year, new listings on US exchanges declined 2%
  • Global equity capital markets (ECM) activity totals $466 billion – down by 18% on 2018
  • Convertible offerings rise to 19% of global ECM – highest percentage share since 2008
  • Five sectors account for 68% of ECM activity

LONDON, 18 October 2019: The first nine months of 2019 were the slowest opening period for Global IPOs since 2016 according to analysis by Refinitiv. Global initial public offerings, which totalled US$105.7 billion, also represented a 27% decrease compared to last year.

IPOs on US exchanges fell 61% during the third quarter of 2019, pulling first nine months 2019 proceeds to US$42.2 billion, a 2% decrease compared to a year ago while IPO activity in EMEA decreased 43% compared to a year ago while Asia Pacific IPO activity fell 34%.

During the third quarter of 2019, global IPO activity declined 39%, by proceeds, and 21%, by number of deals, compared to the second quarter of this year.

Lucille Jones, Analyst at Refinitiv, comments: “Ongoing geopolitical uncertainty looks to be having a significant impact across global IPO markets.

“With a potential Brexit resolution on the horizon and positive signs around the Saudi Aramco IPO, we could see a bumper end to the year for listings.”

Equity capital markets activity, at large, totalled US$466.0 billion during the first nine months of 2019, an 18% decline compared to a year ago and the slowest first nine months for global equity capital markets activity since 2012.

By number of issues, 3,199 ECM offerings were brought to market during the first nine months of the year, an 18% decrease compared to a year ago. Compared to the second quarter of this year, third quarter 2019 ECM volume decreased 17%, marking the slowest third quarter for global equity capital markets activity since 2015.

Convertible offerings increase 11%

Global convertible offerings totalled US$89.2 billion during the first nine months of 2019, accounting for 19% of global equity capital markets activity, the highest percentage for the asset class since 2008. Convertible offerings from companies in the Technology, Financials and Industrials sectors accounted for 61% of overall issuance during the first nine months of 2019, up from 53% a year ago.

Five sectors account for 68% of sector outlook

Led by Technology issuance (18%), the overall volume of equity capital markets activity remained highly concentrated among five main sectors including Financials (16%), Real Estate (13%), Healthcare (11%) and Energy and Power (10%).

US improves overall share of ECM activity

Issuers from the United States raised US$163.6 billion in the global equity capital markets during the first nine months of 2019, a decrease of 10% compared with levels seen a year ago. As a percentage of global ECM, the United States accounted for 35% of overall issuance, an uptick from the 32% recorded during the first nine months of 2018, and the highest annual percentage since 2013.

Asia-Pacific activity falls

Equity capital markets offerings from issuers in Asia Pacific totalled US$137.3 billion during the first nine months of 2019, an 18% decline compared to the same period last year. Offerings by China-domicile issuers, which accounted for 19% of ECM activity so far in 2019, declined by 22% compared to a year ago. ECM offerings from the Financials sector registered a 2% increase compared to a year ago and accounted for 24% of overall Asia Pacific activity during the first nine months of 2019.

Japan ECM hits 11-year low

Japanese ECM offerings totalled US$16.8 billion during the first nine months of 2019, a 38% decline compared to a year ago and the slowest first nine months in Japan since 2008. IPO activity in Japan declined 55% during the first nine months of 2019 and fell below US$3 billion for the first time since 2011.

For more information, please contact Nsikan Edung, Refinitiv Media, on +44 20 7542 2573 or +44 (0) 7391 738 209

About Deals Intelligence: Deals Intelligence, a part of Refinitiv’s Investing & Advisory division, brings up to the minute market intelligence to the deal making community and the financial media through a variety of research reports including Daily Deals Insight, weekly Investment Banking Scorecard, monthly Deals Snapshots and our industry-leading quarterly reviews highlighting trends in M&A and Capital Markets. For more information, please follow us on Twitter @dealintel.

About Refinitiv: Refinitiv, formerly the Financial & Risk business of Thomson Reuters, is one of the world’s largest providers of financial markets data and infrastructure. Serving more than 40,000 institutions in over 190 countries, we provide information, insights, and technology that drive innovation and performance in global markets. Our 160-year Reuters heritage of integrity enables customers to make critical decisions with confidence, while our unique open platform, best-in-class data, and cutting-edge technology bring greater opportunity to our customers. By advancing our customers, we drive progress for the entire financial community. For more information, go to www.refinitiv.com.

Global IPOs Image by congerdesign from Pixabay

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