IPOs slow down globally in Q3 after frenetic 2021 start

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However, the number of listings in the first nine months of the year was still the highest since the dotcom bubble of 2000.

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Initial public offerings (IPOs) globally slowed from its previous frenetic pace in the third quarter of 2021, according to Refinitiv data, but the number of listings in the first nine months of the year was still the highest since the dotcom bubble of 2000 .

The IPO in the third quarter raised a total of $94.6 billion, down 26.3% from the second quarter, as activity cooled due to a summer slump and US investigations into Chinese listings, just days after its New York IPO on Diddy Global Inc. After Beijing’s action.

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More than 2,000 IPOs have raised a combined $421 billion year-over-year globally, a record high, as private companies rush to garner the rising valuations of their publicly listed peers. This was more than double the income raised during the same period last year.

IPO market will not ‘slow down’ anytime soon: Experts

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This number includes IPOs of 486 special purpose acquisition companies (SPACs) that went public in the first nine months of the year, raising a total of $127.7 billion.

David Ludwig, global head of the company, said, “Following record levels of SPAC IPO activity in the first quarter, that market has taken a necessary break. However, we are seeing early signs of the market returning to normal and opening up to the right issuers ” Equity Capital Markets in Goldman Sachs Group Inc.

High-profile IPOs in the third quarter saw trading app Robinhood Markets Inc.’s listing in New York for $2.1 billion and South Korean software company Crafton Inc. raised more than $3.7 billion on the Korean stock exchange.

The biggest IPO so far this year is a $5.4 billion offering from Tencent-backed Chinese online video company Kuaishou Technology Co Ltd.

In July, US Securities and Exchange Commission Chairman Gary Gensler called for a “pause” in US IPOs of Chinese companies and more transparency about their offshore structures in China and the regulatory risks they face. Chinese listings in the United States came to a standstill as a result. In the first seven months of 2020, Chinese listings reached a record $12.8 billion.

The tech listing remained a darling of investors, even as valuations were scrutinized more closely. But a large mix of sectors were among the stock market debutants. In Europe, Taylor Swift’s record label Universal made a much-anticipated debut on the Amsterdam market, becoming the most valuable company to be listed on the continent this year.

Volvo Cars is also expected to launch an IPO, while Daimler is expected to list its truck unit to diversify the offering for stock market investors.

Ludwig said IPO activity could pick up in the fourth quarter. “The backlog (of IPOs) across sectors and regions is very strong,” he said.


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