Global IPO market off to strongest start since 2007

Pedestrians walking pass the Singapore Exchange (SGX) signage outside the SGX Centre. The global market fpr IPOs is off to one of the strongest since 2007. PHOTO: SPH
Pedestrians walking pass the Singapore Exchange (SGX) signage outside the SGX Centre. The global market fpr IPOs is off to one of the strongest since 2007. PHOTO: SPH

SINGAPORE - The global market for IPOs (initial public offerings) is off to one of its strongest starts since 2007.

In the first half of the year, 772 IPO deals across the globe have raised a total of US$83.4 billion (S$115.5 billion) in proceeds, up 90 per cent from the same period last year.

Ample market liquidity and the upward march of global equity indices have also made this six months the most active first half-year since 2007, going by the total number of IPOs, according to the EY Global IPO Trends report out Thursday.

In the first six months of 2007, a total of 941 IPOs raised US$146 billion.

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The Asia-Pacific region leads the global IPO market in terms of volume and proceeds, accounting for 61 per cent or 468 of the total number of listings worldwide and 44 per cent or US$37 billion of proceeds.

The region is experiencing its most active first half of a year since 2002.

Dr Martin Steinbach, EY Global IPO leader, said: "Activity is underpinned by rallies in many bull markets reaching all-time highs, while investor sentiment has brightened and global outlook is positive. With the momentum of the first half, 2017 is poised to surpass 2016 global IPO levels by both number and proceeds."

EY Asean managing partner Max Loh said: "Asia-Pacific's position as the leading centre of IPO activity will remain unchallenged through the remainder of 2017 with Greater China leading the way.

"Notably, Korea made a significant contribution to total proceeds in the first half of 2017, with mega IPOs from the technology and financial sectors."