Global IPO trends: Q3 2019

An increasing number of companies are waiting to go public, and they will be ready to move quickly when markets recover.

The backlog of high-quality IPOs continues to grow as issuers await more favorable market conditions, pushing IPO activity down across many markets in Q3 2019 compared with Q3 2018.

Overall, 256 IPOs came to the market in Q3 2019 with total proceeds of US$40.2b, a decrease of 24% by volume and 22% by proceeds compared with Q3 2018.

The first nine months of 2019 (YTD 2019) saw a decline of 26% by deal volume (768 IPOs) and a 25% drop in funds raised (US$114.1b) versus YTD 2018.

While deal numbers were down, average first-day returns on the main markets were 27% and average current post-IPO performance was 32%.

“As we enter into the traditional peak season, we expect the global IPO activities to pick up in the last quarter and into 2020 when there is more clarity to US-China trade tensions and Brexit development”, says Paul Go, EY Global IPO Leader.

The full report can be accessed here.

Law contacts:

Jean-Christophe Sabourin

EY Global Transaction Law Leader

Philippe Zimmermann

EY Global Law Sector Leader, Banking & Capital Markets