Global IPO market is on fire; Q1 proceeds surge 529%

Summary

  1. Global IPO proceeds in Q1 surged by a whopping 529%.
  2. The total ECM activity picked up by 229%.
  3. SPAC deals have helped the cause of equity markets.

The equity capital market (ECM) activity in quarter ended March 2021 touched an unprecedented level, according to data collated from various sources.

According to the data available with Dealogic – a financial markets platform offering integrated content and analytics – the ECM activity in the first quarter of 2021 stood at US$465.5 billion– the historical quarterly high. This is spread across 2,104 deals.

The total ECM activity has surged by 229% on a year-on-year basis, driven primarily by the surge in the initial public offerings (IPOs).

The proceeds from global IPOs, during the quarter, surged by an astounding 529% on a year-on-year basis to US$200.9 billion raised against 760 deals. The fresh listings made up almost 43.15% of the total ECM deal value that took place during the three-month period.

As per the data available with the global consultancy firm Price Waterhouse Coopers (PwC), current year’s IPOs constitute 61% of total IPO value that the world saw in 2020 – US$331.3 billion.

The IPOs through the Special Purpose Acquisition Vehicle (SPAC) route also contributed heavily to the increase in record ECM during the quarter, with SPAC IPOs contributing about US$97 billion to the record global IPO volume of US$200.9 billion. Till now, in the current year, companies have raised US$107.3 billion from 343 SPAC deals – usually referred to as a backdoor entry for the firms to access the capital markets.

In the APAC region as well, the secondary listing of Chinese companies in the Hong Kong markets have contributed to the increase in the ECM. Also, foreign money flows into Chinese placements helped the cause, as they strive for quality play at reasonable valuation.

In Europe, the IPO boom is being driven by the rush in Technologyignites IPO activity across Europe’s exchanges.

After the global markets shred past the bear run of March 2020, the ECM activity has picked up left, right, and centre. As a result, all three quarters since Q2 2020 also occupy a spot on the list of the five highest volume quarters ever.


Disclaimer
The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.