Liquidity-fuelled IPO markets in the traditional slow Q1, with 430 deals raising US$105.6 billion in proceeds, said EY recently.
The deal number and proceed amount in the quarter represents increases of 85% and 271% year-on-year respectively, which makes the past quarter the best-performing Q1 in the last 20 years, according to the company.
Just as traditional IPO markets have been highly active, the special purpose acquisition company (SPAC) IPOs in Q1 have also been breaking records, completing more deals and raising more in proceeds than in the whole of 2020, EY observed.
This continued surge in momentum can be attributed to ample liquidity and new opportunities propelled by the pandemic, EY pointed out.
At the same time, speculative and opportunistic transactions along with the popularisation of retail investing platforms among the general public, including younger generations, have made investing more accessible than ever, the firm added.
Asia Pacific IPO markets defies expectations
The Asia Pacific region had a head start in the year, accounting for 47% of the global IPO activities in Q1 2021, according to EY.
The region saw 200 IPOs raising US$34.3b in proceeds, achieving the highest Q1 proceeds in 20 years, beating the former record from Q1 2010, the firm said.
In terms of sector activity, technology outpaced all others by both volume (51) and proceeds (US$17.7b), according to EY numbers.
Greater China’s positive economic growth was reflected in its buoyant IPO momentum, EY pointed out.
Despite a new review process instituted by Chinese regulators, Greater China saw a 51% increase in deals (133) and 121% increase by proceeds (US$28.9b) year-on-year, EY observed.
Japan’s IPO activity remained steady as well, as funds continued to find their way to high-tech startups resulting in a healthy pipeline of IPO candidates, EY said, adding that overall Japan saw 20 IPOs raise US$1.0b in proceeds.
“There is optimism, yet uncertainties remain, which could lead to volatility in Asia Pacific IPO markets in 2021,” said Ringo Choi, EY Asia-Pacific IPO Leader. “Asia Pacific companies will need to be resilient to these types of challenges to be successful in their IPO journey.”
Other regions and sector performance
- The Americas region continued its streak of resilience into the first quarter with 121 deals raising US$45.2b in proceeds. Overall, Americas exchanges saw the highest combined deal numbers and proceeds in more than 20 years.
- Following a quiet 2020, IPO markets in EMEIA roared to life in Q1 2021 resulting in 109 IPOs and US$26.1b in proceeds.
- The technology sector remained as the top spot by deal numbers through the first quarter dominating in terms of number of IPOs (111) and proceeds (US$46.1b).
- Health care followed with 78 IPOs raising US$14billion. Industrials came in third by IPO numbers seeing 57 deals raise US$6.3b in proceeds.