(BFM Bourse) – More than $ 450 billion was raised through IPOs in 2021 on global markets, a third of which by tech groups, according to EY’s annual report.
An abundance of liquidity in a context of global economic recovery and an environment of very low or even zero interest rates, coupled with low volatility of stock markets also rebounding: this is the favorable ground in which the IPO market has flourished. This year. According to data from EY’s annual report based on operations carried out between January 1 and December 7, 2021, as well as those expected by the end of the year, 2,388 IPOs were registered across the world for an amount overall raised $ 453.3 billion. That is an increase of 64% in volume and 67% in value compared to 2020, despite an unfavorable base effect (+ 19% in volume and + 29% in value between 2019 and 2020).
“The IPO markets have turned out to be the most active of the last 20 years in 2021. Market optimism due to the initial recovery in economies, the launches of the Covid-19 vaccines and the cash flow from the programs government stimulus “have allowed these markets to have the wind in their sails,” explains Paul Go, thematic manager at EY.
The tech sector recorded the most deals with 611 IPOs raising $ 147.5 billion, just under a third of the total for 26% of introductions. Next comes the health sector with 376 IPOs for an amount raised of $ 65.4 billion. The industrial sector completes this podium with 310 operations and 63.1 billion dollars.
The most active Asia
In terms of number of transactions, the Asia-Pacific zone was the most active with 1,136 IPOs (+ 28%) ahead of Europe, the Middle East, India and Africa ( EMEA) with 724 transactions. Much less IPOs (416) were registered on the other side of the Atlantic, in the “Americas” zone, but these brought in more (174.6 billion dollars, including 155.7 for the NYSE and the Nasdaq), against 169 billion in Asia-Pacific and 109 billion in EMEA.
In the US markets, the healthcare sector remained the first in terms of volume with 172 introductions generating $ 32.2 billion, but the technology compartment was the best performing in value with 152 IPOs for $ 72.2 billion lifted.
46 transactions at Euronext
In Europe, the number of introductions and the volume of issues more than doubled, respectively from 191 to 485 deals and from 27.5 to 81.1 billion dollars, making it the economic zone with the strongest growth in Europe. this market. The main European stock exchange remains the London Stock Exchange with 96 transactions for an amount of 21.1 billion dollars, followed by Euronext with 46 transactions and 15.1 billion euros.
“The year 2021 will remain as a record year for IPOs showing levels not reached for 20 years. In this context, Europe has benefited from a strong traction”, comments Franck Sebag, EY partner.
“In the 4th quarter, however, the winds changed with the appearance of the Omicron variant, the persistence of geopolitical tensions, new government regulations (notably from Beijing) and increased market volatility,” notes Paul Go. companies applying for an IPO are taking a break or going ahead in 2022, they will have to meet the requirements of investors in terms of growth strategies, as well as well-articulated ESG plans “he also believes. According to EY, the market should face headwinds in 2022 (inflation, geopolitical tensions) but also benefit from tailwinds (high valuations and still abundant liquidity).
Quentin Soubranne – © 2021 BFM Bourse