Asia-Pacific continues IPO domination

Asia-Pacific accounted for 70 percent of IPOs globally in the first three months of the year, according to research from EY.

‘IPO activity in Asia-Pacific has been powering ahead due to the region’s relative insulation from political uncertainty elsewhere in the world, ample liquidity in emerging markets and strengthening investor sentiment on the back of reduced volatility and steady stock market gains,’ says Ringo Choi, EY’s Asia-Pacific IPO leader, in the report Global IPO trends: Q1 2017 – Pathway to growth.

‘While IPO activity will increase on mainland China and selected ASEAN exchanges during the second and third quarters, there may be a slowdown in new listings in other markets,’ he adds. ‘Hence, this region may see a temporary drop in activity, but is expected to rebound in the final quarter of the year.’ 

China’s Shenzhen and Shanghai exchanges were the most active exchanges by number of IPOs, accounting for 20 percent and 19 percent, respectively, of the global total. Activity was spread across the Asia-Pacific region as well, with listings on public markets in Japan (27), Australia (23), South East Asia (14) and South Korea (12). In South East Asia, EY highlights ‘a number of hotspots’: Thailand had five IPOs, Malaysia four, there were three new listings in Singapore, and one each in the Philippines and Indonesia. The region saw no mega-deals, however.

Instead, it was Snap’s IPO and the $1.8 bn listing of Invitation Homes that helped gave the NYSE the title of most active exchange by proceeds, notes EY. 

Globally, the first quarter of the year saw 369 IPOs raise $33.7 bn – the highest number of listings since the same quarter in 2007, with an ‘optimistic’ outlook for accelerated growth over the rest of the year.