The first half of the year has been a late bloomer in terms of activity, but markets are now beginning to see spurts of growth. This is according to our latest Cross-Border IPO Index, which found that capital raised in the global IPO market fell by 37%, with volume dipping 34% comparatively on last year. A total of USD 69.8 billion was raised across 514 deals.
Continuing and recent geopolitical events, such as the US government shutdown, the Sino-US trade tensions and increased Brexit uncertainty impacted activity in some areas. Despite these external factors, there is a strong undercurrent of positive sentiment among issuers.
The total amount of domestic capital raised globally fell by 32% to USD 58.5 billion, while the number of IPOs recorded fell by 37% to 429. North America was the only region to show an increase in capital raised, up 13%.
Cross-border deals falter
Global cross-border IPO activity faltered in the first half of 2019, with total value down 55% to USD 11.3 billion and volume down 16% with 85 listings recorded. The majority of cross-border IPOs in the first six months of 2019 were in Asia Pacific, accounting for 80% of total cross-border capital raised and 75% of listings. China remained the most active cross-border issuer. Much of the remainder of cross-border IPO activity came from North America where USD 3.5 billion was raised, a fall of 62%.
Mega deals decline
A total of 10 mega IPOs were recorded in the first half of 2019 raising USD 24.3 billion, in contrast to 18 mega IPOs recorded in the same period in 2019, raising USD 40 billion with steeper declines in capital raising compared to volume of listings.
- Financials was the sector with the largest amount of capital raised in the first half of 2019, buoyed by four listings over USD 1 billion.
- Transportation was a major theme in the Technology sector during the first six months of 2019 as two of the world’s biggest tech names — Uber and Lyft — listed in the US.