Following frenetic 2021 start, IPOs slow down globally in Q3 after frentecing 2022

Following frenetic 2021 start, IPOs slow down globally in Q3 after frentecing 2022 ...

According to Refinitiv data, the number of publicly traded products (IPO) globally slowed in the third quarter of 2021 from their previous frenetic pace in September 30, but the figure of listings in first nine months of the year was the highest since the dotcom bubble of 2000.

IPOs in the third quarter raised a total of $94.6 billion, up 26.3% from the second quarter, as activity cooled owing to octaneous summer slowdown and US scrutiny of Chinese listings prompted by Beijing's crackdown on DiDi Global Inc (DIDI.N) just days after its New York inauguration.

More than 2,000 IPOs have raised a combined $421 billion global year-to-date, achieving tenfold from the previous year, as private firms struggled to obtain high valuations of their publicly listed peers. That was more than double the sum raised during the same period last year.

This figure includes IPOs of 486 special purpose acquisition companies (SPACs) that went public in the first nine months of the year, bringing a total worth of $127.7 billion.

"After a record high level of SPAC IPO activity in the first quarter, that market has taken pause. We're seeing early signs of that market normalize and open up for the right issuers," stated David Ludwig, global head of equity capital markets at Goldman Sachs Group Inc. (GS.N).

The IPOs for the third quarter included Robinhood Markets Inc's (HOOD.O) $2.1 billion listing in New York and South Korean software firm Krafton Inc, which raised more than $3.7 billion on the Korean stock exchange.

Tencent-backed Chinese online video firm Kuaishou Technology Co Ltd's (1024.HK) $5.4 billion offer is the largest IPO this year so far.

Gary Gensler, the United States Securities and Exchange Commission Chair, requested a "pause" in IPOs of Chinese businesses in July, and sought more clarity about their offshore structures and regulatory risks faced in China. As a result, Chinese listings in the United States reached stumbling blocks. Chinese listings had risen to a record $12.8 billion in the first seven months of 2020. L1N2PU1GE, LLC

Even as valuations were more closely examined, tech listings remained investor darlings. While a greater number of investors were among the market debutants, he also had receptive to stumbling blocks. Taylor Swift's record label Universal (UMG.AS) has made a highly anticipated debut on the Amsterdam bourse, the most valuable firm to list on Europe this year.

Volvo Cars is also expected to launch an IPO, while Daimler is expected not to mention its trucks unit to diversify the offering for stock market investors.

Ludwig predicted that the IPO activity in the fourth quarter might pick up. "The backlog (of IPOs) across the street is extremely large, across regions and sectors," he added.

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