The global IPO market is showing signs of recovery amid intensified initial public offerings in Asia, analysts believe.
According to calculations of Bloomberg agency, in March and April IPO in the world were carried out to the amount of about $ 25 billion, which almost doubles the figure for the first two months of this year.
Issuers from Hong Kong to Milan saw a window of opportunity as volatility in the markets declined. Activity over the past two months has been particularly buoyant in Asia, with local exchanges accounting for nearly 80% of April’s IPOs. The number of listings in Europe has also increased. Meanwhile, fears of a U.S. recession are scaring away U.S. issuers, slowing the full recovery of the global market.
On average, transaction sizes remain smaller than before. The amount of money raised in IPOs this year is about half what it was during the same period last year.
“We’re starting to see sprouts of activity, companies are resuming processes that were suspended, but there’s still a significant degree of uncertainty in the market,” says Jason Manketo, one of the heads of Linklaters law firm.
“The IPO market is coming back gradually and slowly,” notes Goldman Sachs Asia analyst James Wang. – It’s not back 100% yet, but there are signs of life and energy recovery.”
