More value, but fewer transactions. In the second quarter of 2019, funds raised by Initial Public Offering (IPOs) worldwide increased very slightly, while the number of transactions decreased by 14%, according to the latest "Global IPO Watch" report from the consulting and audit firm PwC.
In total, 280 IPOs raised $62.6 billion, compared to 325 IPOs for $62.2 billion in the second quarter of 2018.
Source : PwC
The EMEA region lags behind, with 19% ($15.3 billion) of funds raised by IPO compared to 53% ($43.4 billion) raised in the Americas. Nexi, an Italian group (2.3 billion funds raised), is the largest IPO in the EMEA region.
The report analyzed the geographical distribution of IPO activity in the second quarter of 2019. The American continent leads in terms of value (53% of funds raised, or $43.4 billion), while Asia-Pacific leads in terms of number of transactions (31% of transactions, or 86 transactions). Asia-Pacific accounted for 28% ($23.4 billion) of funds raised, but 58% (265 transactions) of the number of IPOs. The EMEA region lags behind, with 19% ($15.3 billion) of funds raised by IPO and 14% (63 transactions) of the number of transactions this quarter.
Source : PwC
By stock market operator, the NYSE (26%) and the Nasdaq (26%) dominate the ranking, but LSE is resisting despite the Brexit with 10% of transactions in the 1st half. As for Euronext, it is still possible to catch up by the end of the year.A few candidates left for H2
The three regional economies each have a strong portfolio of IPO candidates that could boost activity levels in the second half of 2019. This is particularly evident in the Americas, where a number of high-value "unicorns" could join Uber Technologies (more than $8 billion raised in May on the New York Stock Exchange), Avantor and Lyft in public procurement this year. In the other two regions, PwC experts expect a few giant transactions in the coming months. For example, AB Inbev is seeking to raise up to $9.8 billion with the plan to list its Asia-Pacific operations on the Hong Kong Stock Exchange. In addition, 120 companies have already submitted their application for an introduction to the Science and Technology Innovation Board launched last March in China.
However, several risks are likely to disrupt the market, including a new stage in the US-China trade war, the intensification of the US-Iran conflict, and a Brexit without an agreement.
The report reveals that consumer services raised the most funds in the second quarter of 2019 ($20.6 billion via 73 IPOs), supported in particular by the Uber Technologies and Lyft IPOs mentioned above. Financial services is in second place with $18.4 billion in funds raised through 104 transactions. As for the industry, it ranks third with $14.6 billion in funds raised through 90 IPOs.