Global IPO kitty at $94.3 bn in Jan-June: Report
New Delhi: A total of 660 initial public offerings raised a cumulative USD 94.3 billion globally during January-June 2018 and the IPO activity looks rosy in the second half as well, says a report.
According to an EY report, at USD 94.3 billion the IPO proceeds for the first half of 2018 were the highest since January-June 2015 when 704 IPOs had raised USD 110.1 billion.
However, in volume terms, global IPO figures witnessed 21 per cent decline as compared to the year-ago period.
"The good news is that economic conditions remain encouraging, equity valuations remain high in many parts of the world and interest rates remain low. As a result, we expect a resurgence in IPO activity during the second half of 2018," said Martin Steinbach, EY Global and EMEIA IPO Leader.
Region-wise, the Americas regained the lead in terms of proceeds as there were 122 IPOs on Americas' exchanges, which raised USD 35.3 billion during the reported period.
In the Asia-Pacific region, riding on a strong second quarter 2018, Japan IPO volumes declined only 5 per cent and proceeds increased 8 per cent over first half of 2017.
In Greater China, despite a decline in IPO activity, China's Shanghai (SSE) exchange hosted one of this year's largest IPOs globally and was also the second among exchanges by proceeds.
Sector-wise, technology and financial services will continue to drive IPO listings throughout the second half of 2018. Healthcare listings will remain among the top five sectors, led by a flurry of biotech companies looking to hit markets in various regions, the report said.
"Given the current uncertainties in the IPO market, issuers are always wise to consider a multi-track approach, where organisations prepare for their IPO so that they are ready to go when the window opens, but remain open to alternate funding options and be flexible in terms of timing and pricing," it added.