Global IPO transactions raised USD33.7 billion in Q1


The first quarter of this year is a good time for the initial public offers, IPO. Latest data from EY shows that global IPO activities generated USD33.7 billion within the quarter.

According to the data, the IPO market was led by market gains in Asia-Pacific and the US hosting the first two mega deals of the year.

The threshold for the first quarter is a 92% year-over-year increase in the global number of IPOs and a 146% increase in global proceeds.

Moreover, Q1 2017 was the most active first quarter by global number of IPOs since Q1 2007 (with 399 IPOs raising US$47.5b). These and other findings were published today in the EY quarterly report, Global IPO Trends: Q1 2017.

With 45 IPOs, the technology sector saw the largest interests with 19.2% of the total activity which amounted to a total of USD6,4 billion.

Telecommunications saw the smallest deal during the period with just 1% of total activity amounting to just USD351 million within the quarter.

Commenting on the report, Dr. Martin Steinbach, EY Global and EY EMEIA IPO Leader said “This is a promising start to global IPO activity this year. In the face of sustained global economic uncertainty, the first quarter of this year has set the stage for accelerated growth in 2017. Economic fundamentals are improving in the major developed economies”.

He added that “Equity index performance and valuations are trending upward, with several major indices reaching all-time highs. Concurrently, volatility is low, underpinning positive IPO sentiment, which is also supported by the successful US listing of a large technology unicorn.”

On the outlook for the second quarter and beyond, Steinbach said:

“Overall, global IPO markets had the best start with the highest first quarter by global number of IPOs since 2007. The upswing is buoyed by a strong desire for investors to generate returns and the positive momentum from a strong IPO activity in the fourth quarter 2016. However, ongoing uncertainty continues to define the global conversation, in spite of the market rallies seen in many main market indices after respective US presidential and Brexit votes.”

Source: EY
Source: EY

The data was gathered from all listed deals and activity based on priced up to 24 March 2017. Data was derived through EY’s IPO readiness assessments, IPO preparation, project management and execution services it provides to clients worldwide.