We’re coming to the end of Q3, and the IPO market just looks ugly. According to FT Alphaville, PricewaterhouseCoopers and Renaissance Capital have put out reports on the IPO market, and there isn’t much to celebrate.
Globally, according to Renaissance Capital, the IPO market was its quietest since Q3 2009, as measured by issuance volume. A whopping 87 per cent of the action came in the first six weeks of the quarter … and effectively ended with the market volatility that struck in the middle of August.
Even some that made it to market didn’t go for the most glorious of reasons. In Spain, Bankia and Banca Civica held their IPOs to address capital shortfalls. Nonetheless, they helped make Bolsa de Madrid the top exchange in the world in Q3, with the two IPOs good for $5.2 bn in fresh capital.
Shenzhen and Shanghai followed in capital raised, with $2.9 bn and $2.4 bn, respectively, but shares traded there are available only to Chinese investors. Without this action, the IPO market in Asia would have been off around 4 per cent, FT Alphaville reports.
Meanwhile, PricewaterhouseCoopers focuses on the US IPO market. The good news, as you’ve seen here before, is that the IPO pipeline is filling up fast, even if few companies are actually pricing. This needs to be balanced, however, with the high rate of withdrawn or deferred IPOs in the quarter. Also, those propped up withprivate equity money could take a while to actually go public.
Source: FT Alphaville
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