Geopolitical tensions and factors such as inflation halved the number of initial public offerings (IPOs) worldwide in the second quarter of 2022 compared to the same period in 2021, according to a study by EY on Thursday.
There were 305 IPOs worldwide for $40.6 billion in the corresponding three months, down 54% and 65%.record year 2021which saw 1,171 IPOs. there”rising market volatility“Because of the war in Ukraine”.adverse macroeconomic factorslike runaway inflation as welldisappointing performancerecently listed actorsled to many IPOs being delayed“, EY elaborates in its report. Far from struggling, the Asia-Pacific region was the most dynamic, with 181 IPOs and more than half of the total funds raised, or $23.3 billion.
“The new policy of the Chinese government“required”renew optimism“over the past year and speed up the stock market.”for the rest of the yearin the region, the authors of the study note. Three of the four largest IPOs in the first half of 2022 were in Asia, including LG Energy Solution, which raised $10.7 billion on the Seoul Stock Exchange. In Europe / Middle East / India / Africa where “Troubled times and extraordinary uncertainties have kept market volatility high“The number of IPOs fell to 83 (-62%) for $14.8 billion (-44%) raised.”Investors have become more selective and are refocusing on players that demonstrate sustainable business models and profitable growth with environmental, social and governance as core values.EY notes.
It was the Americas region that was the least prolific, with 41 new listings in the second quarter (-73%), worth $2.5 billion, a 95 percent year-over-year decline. “The United States remains the preferred cross-border destination“However, EY experts believe. there”technologyWith 120 IPOs in the first half, it’s the sector with the most activity, but it’s energy, with $27.9 billion in production, that’s the most productive over the period. An indicator that has almost doubled compared to 2021, boosted by rising oil and electricity prices.
Source: Le Figaro
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