IPOs slow down globally in Q3 after frenetic 2021 start

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Sep 30 (Businesshala) – Initial public offerings (IPOs) globally slowed from its previous frenetic pace in the third quarter of 2021, but the number of listings in the first nine months of the year is still the highest since the dotcom bubble of 2000 was, according to Refinitiv data.

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IPOs in the third quarter raised nearly $94.6 billion in total, down 26.3% from the second quarter because of a summer slump and a US investigation into Chinese listings just days after Beijing’s crackdown on Diddy Global Inc (DIDI.N) After that the activity cooled down. Its New York IPO.

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More than 2,000 IPOs have raised a combined $421 billion year-over-year globally, a record high, as private companies rush to garner the rising valuations of their publicly listed peers. This was more than double the income raised during the same period last year.

This 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.

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David Ludwig, global head of the company, said, “Following record levels of SPAC IPO activity in the first quarter, that market has taken a necessary break. However, we are seeing early signs of the market returning to normal and opening up to the right issuers ” Equity Capital Markets in Goldman Sachs Group Inc. (GS.N).

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

The biggest IPO so far this year is Tencent-backed Chinese online video company Kuaishou Technology Co Ltd’s (1024.HK) $5.4 billion offering.

In July, US Securities and Exchange Commission Chairman Gary Gensler called for a “pause” in US IPOs of Chinese companies and more transparency about their offshore structures in China and the regulatory risks they face. Chinese listings in the United States came to a standstill as a result. In the first seven months of 2020, Chinese listings reached a record $12.8 billion.L1N2PU1GE

Tech listings remained a favorite of investors despite valuations being scrutinized more closely. But a large mix of sectors were among the stock market debutants. In Europe, Taylor Swift’s record label Universal (UMG.AS) made a much-anticipated debut on the Amsterdam market, becoming the most valuable company to be listed on the continent this year.

Volvo Cars is also expected to launch an IPO, while Daimler is expected to list its truck unit to diversify the offering for stock market investors.

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

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


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