Market stability and positive sentiment create strong foundations for IPOs in 2017
Global IPO volumes in 2017 reached their highest level in a decade as momentum built through the year. Our latest Cross-Border IPO Index shows there were a total of 1,694 listings during the 12-month period, raising a total of USD 206.6 billion — a jump of around a third for both metrics in 2016.
Low market volatility as a result of the relatively benign geopolitical environment — one dominated last year by the US general elections and the UK’s decision to leave the European Union — and improved market sentiment were behind the increase in global IPO activity. Cross-border deals jumped by 60% across all regions, including Latin America which saw its first cross-border listing in 10 years.Cross-border capital raising also grew in 2017 by 25%, the majority of which was accounted for by a strong performance in EMEA and North America. That helped offset a decline in Asia Pacific cross-border capital raising. On the domestic front, value was up an impressive 55% year on year while volume was up by 40%.
Koen Vanhaerents, Global Chair, Capital Markets, said:
The IPO market in 2017 has put in its best performance in 10 years. A more stable political environment in some of the key markets, combined with strong economic growth, has boosted both the number of listings and the volume of capital raised.