IPOs off to slow start globally in 2019 amid Brexit, US-China trade war uncertainties, says Dealogic

Companies have only raised US$5.4 billion globally so far in 2019, down by 78 per cent from the same period a year ago, marking the lowest year-to-date value in three years, global financial data provider Dealogic said on Tuesday.

The number of deals also dropped to 87 during the period, down by 52 per cent year on year, according to Dealogic. All three regions – Asia-Pacific, the Americas and EMEA (Europe, the Middle East and Africa) – have reported significantly lower initial public offering activity during the period. EMEA, in particular, only recorded six IPOs that generated US$95 million, the lowest in a decade.

Issuers in Asia-Pacific, meanwhile, led the global market in both fundraising size and deal numbers, with 54 listings for a total value of US$3 billion.

IPO activity in the Americas and EMEA has been in decline since the second half of 2018, mainly because of Brexit and the US-China trade war, said analysts at Dealogic: “The second half was affected by macroeconomic uncertainty, rising political and trade tensions between the US, EU and China. The uncertainty continues [into 2019].”

Listings had a good year in 2018 globally, with 1,519 IPOs raising US$210.1 billion, the highest proceeds since 2014, when Alibaba Group Holding, which owns the South China Morning Post, raised a record US$25 billion in New York.

The tenuous truce in the US-China trade war will decide whether Hong Kong’s best IPO party ever continues in the new year

Hong Kong reclaimed its crown as the world’s most preferred destination for IPOs in 2018, with a record 208 companies raising a combined HK$286.6 billion (US$36.6 billion).