IPOs slow globally in Q3 after frantic start to 2021

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Traders work during the IPO of Chinese rideshare company Didi Global Inc on the New York Stock Exchange (NYSE) floor in New York, United States on June 30, 2021. REUTERS / Brendan McDermid

September 30 (Reuters) – Initial public offerings (IPOs) generally slowed in the third quarter of 2021 from their previous breakneck pace, but the number of listings in the first nine months of the year was still the highest since the dot-com bubble of 2000, according to data from Refinitiv.

IPOs in the third quarter raised a total of around $ 94.6 billion, down 26.3% from the second quarter, as activity slowed due to a summer slowdown and scrutiny of Chinese listings by the United States in the wake of Beijing’s crackdown on DiDi Global Inc (DIDI.N) just days after its New York IPO.

More than 2,000 IPOs have raised a total of $ 421 billion worldwide since the start of the year, a record high, as private companies rushed to hit the skyrocketing valuations of their listed peers. This was more than double the revenue collected over the same period last year.

That number includes IPOs of 486 Special Purpose Acquisition Companies (SPACs) that went public in the first nine months of the year, raising a total of $ 127.7 billion.

“After record levels of PSPC IPO activity in the first quarter, this market has taken a much needed hiatus. However, we are seeing the first signs of this market starting to normalize and open up to the right issuers.” said David Ludwig, global head of equity capital markets at Goldman Sachs Group Inc (GS.N).

High-profile third-quarter IPOs included the listing of app Robinhood Markets Inc (HOOD.O) for $ 2.1 billion in New York City and South Korean software company Krafton Inc which raised more than $ 3.7 billion on the Korean stock exchange.

The largest IPO this year to date is the Tencent-backed Chinese online video company Kuaishou Technology Co Ltd (1024.HK) $ 5.4 billion bid.

In July, the chairman of the United States Securities and Exchange Commission, Gary Gensler, called for a “pause” in the IPOs of Chinese companies in the United States and called for more transparency on their offshore structures and the risks. regulations they face in China. As a result, Chinese listings in the United States came to a halt. In the first seven months of 2020, Chinese listings had reached a record high of $ 12.8 billion.

Tech quotes have remained investor favorites even as valuations come under scrutiny. But a greater mix of sectors was among the newbies in the stock market. In Europe, Taylor Swift Universal’s label (UMG.AS) made a much-anticipated debut on the Amsterdam Stock Exchange, the highest-listed company on the continent this year.

Volvo Cars is also expected to launch an IPO while Daimler is expected to list its truck unit on the stock exchange in order to diversify the offer for stock investors.

Ludwig said fourth-quarter IPO activity may pick up. “The backlog (of IPOs) across the street is very strong, in all regions and sectors,” he said.

Reporting by Echo Wang in New York, Abhinav Ramnarayan in London; Editing by David Gregorio

Our standards: Thomson Reuters Trust Principles.


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