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Global IPO Value Hits $268bn In 2020, Highest In 10 Yrs

Despite the COVID-19 pandemic’s devastating impact across the broad spectrum of the global economy last year, the initial public offering (IPO) sub-segment of the global equities market recorded a whopping $268.0 billion value from a total of 1,363 IPOs deals, demonstrating the resilience of equity and capital markets.

A research data analyzed and published by Comprar Acciones on the global equities market’s IPOs volume indicated a rise by 19% in 2020 compared to the 2019 volume even as the IPOs’ value surged by 29%.

With the performance, the total IPO proceeds were the highest since 2010 when 1,361 IPOs raised $290.2 billion.

The research data also showed that in the U.S, 43 consumer companies completed IPOs during the year, up from 27 in 2019, with the raised value hitting $19.57 billion. The value was about three times more that the $6.77 billion raised in the previous year.

According to the Comrar Acciones’ research findings, the most active sectors in the 2020 IPO market were technology, industrials and healthcare. The sectors accounted for a 59% share of global deals and 64% of the total value.

The report further showed that on regional basis, the United States’ IPOs recorded the highest investments and deals, rising 30% in deal number and 78% in proceeds.

In the previous year, the market raised $54.9 billion from 217 deals compared to last year’s 282 deals, from which $97.9 billion was raised.

Despite the impressive performance of the U.S’ market, the Asia Pacific took the lead in terms of value and deal number, recording 20% increase in deals to 822 from 686 deals in the preceding year.

Also, market’s IPO deal value rose by 45% from $93.6 billion grossed in 2019 to $136.2 billion in 2020.

The report further indicated that the U.S’ exchanges accounted for 79% of global deal numbers and 88% of deal value. US Nasdaq received $55.3 billion from 181 IPOs while the NYSE got $30.9 billion from 43 IPOs.

A further assessment of the global IPOs’ performance reflected that in Q4 2020 the market raised $101.4 billion, an increase of 30% year-over-year (YoY) in deal number and 9% in value from 490 IPOs raising.

The highest valued IPO in the quarter under review was JD Health, which raised $4.0 billion while AirBnB raised $3.8 billion compared to DoorDash’s $3.4 billion value.

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