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Reuters (December 8)

2023/ 12/ 09 by jd in Global News

“Since war broke out in Ukraine and the U.S. Federal Reserve began a rapid cycle of raising borrowing costs early last year, it has been exceedingly difficult in most parts of the world for companies to get initial public offerings off the ground. Many are getting ready in case an opportunity arises,” but conditions remain unpromising. So far in 2023, “new listings have raised just $114 billion,” which is “on pace to be the lowest amount since 2008” and marks a “dramatic fall from the $571 billion peak achieved just two years ago.”

 

INC. (July/August Issue)

2019/ 08/ 12 by jd in Global News

IPOs are forecast to top 200 in 2019, raising approximately $70 billion. “If companies now seem to be rushing to the IPO market, it may be they sense that the risks of waiting are rising fast. VCs are taking advantage of the best opportunity to transfer that risk—and burn rate—to public stockholders.”

 

Financial Times (May 20)

2018/ 05/ 22 by jd in Global News

“Today, Hong Kong’s future as a global financial centre looks uncertain as the rival Shanghai Stock Exchange grows in size and credibility…. On the face of it, conditions at the HKEX look fine.” Revenues, profits and new listings were all up in 2017. “Yet Hong Kong was only third when it came to money raised in IPOs. Shanghai and New York were ahead by value, while Shanghai and Shenzhen surpassed the number of Hong Kong listings.”

 

Global Investor (February Issue)

2014/ 02/ 02 by jd in Global News

“Initial public offerings (IPOs) in the Middle East and North Africa (Mena) region are gathering momentum, with a burgeoning pipeline of deals and renewed optimism of further supply stretching into the future.” Saudi Arabia’s Tadawul Exchange is predicted to be the region’s most active, followed by the Dubai Financial Market, Qatar Exchange and the Abu Dhabi Exchange. “However, some of these companies could look to the London Stock Exchange due to its wider access to international investors. The dearth of liquidity in regional compared with global exchanges remains a challenge for local IPOs.”

 

Euromoney (August Issue)Euromoney (August Issue)

2012/ 08/ 11 by jd in Global News

“Trust has broken down between IPO vendors and issuers and traditional investors in new stock offerings in Europe. Deal arrangers seem incapable of bridging the valuation gap between the two sides.” Issuer focus on achieving high valuation is colliding with investor expectation to buy at a discount. As a result, 50% of Europe’s large planned IPOs failed this year. The situation is only slightly better for IPOs of all sizes. “In the first seven months of this year, 143 initial public offerings were priced for European issuers, while 50 others, over one-third as many, were either announced and then postponed or launched and then pulled. That’s a very high failure rate.”

“Trust has broken down between IPO vendors and issuers and traditional investors in new stock offerings in Europe. Deal arrangers seem incapable of bridging the valuation gap between the two sides.” Issuer focus on achieving high valuation is colliding with investor expectation to buy at a discount. As a result, 50% of Europe’s large planned IPOs failed this year. The situation is only slightly better for IPOs of all sizes. “In the first seven months of this year, 143 initial public offerings were priced for European issuers, while 50 others, over one-third as many, were either announced and then postponed or launched and then pulled. That’s a very high failure rate.”

 

The Economist (May 19)

2012/ 05/ 20 by jd in Global News

“Public companies built the railroads of the 19th century. They filled the world with cars and televisions and computers. They brought transparency to business life and opportunities to small investors.” And now they are endangered. “The number of public companies has fallen dramatically over the past decade—by 38% in America since 1997 and 48% in Britain. The number of initial public offerings (IPOs) in America has declined from an average of 311 a year in 1980-2000 to 99 a year in 2001-11.” More demanding regulations have been the main cause many have chosen to go or stay private. “Because public companies sell shares to the unsophisticated, policymakers are right to regulate them more tightly than other forms of corporate organisation. But not so tightly that entrepreneurs start to dread the prospect of a public listing. The public company has long been the locomotive of capitalism. Governments should not derail it.”“Public companies built the railroads of the 19th century. They filled the world with cars and televisions and computers. They brought transparency to business life and opportunities to small investors.” And now they are endangered. “The number of public companies has fallen dramatically over the past decade—by 38% in America since 1997 and 48% in Britain. The number of initial public offerings (IPOs) in America has declined from an average of 311 a year in 1980-2000 to 99 a year in 2001-11.” More demanding regulations have been the main cause many have chosen to go or stay private. “Because public companies sell shares to the unsophisticated, policymakers are right to regulate them more tightly than other forms of corporate organisation. But not so tightly that entrepreneurs start to dread the prospect of a public listing. The public company has long been the locomotive of capitalism. Governments should not derail it.”

 

Wall Street Journal (January 3)

2012/ 01/ 04 by jd in Global News

“For the third year in a row the world’s leading exchange for new stock offerings was located not in New York, but in Hong Kong. And even without counting Hong Kong’s $31 billion in deals, the various exchanges on the Chinese mainland slightly exceeded the $41 billion combined total of Nasdaq and the New York Stock Exchange, according to Dealogic.” The Journal blames the disappointing results on the cumbersome regulatory environment of the U.S. market since passage of the Sarbanes Oxley (SOX) Act.

 

Financial Times (November 13)

2011/ 11/ 15 by jd in Global News

“Stock markets have long played a critical role in the global economy, funnelling the wealth of individuals to businesses in need of money to expand…..they have helped turn trading nations into empires, created a multibillion-dollar savings industry and fuelled the growth of 21st-century titans such as Google.” Yet, IPOs have dropped off dramatically in recent years. Experts are divided as to whether this is a temporary change linked to economic upheaval or the sign of a fundamental shift.

 

[archive]