- Global IPO proceeds halve year-on-year in Q1, EQ’s data analysis shows
- EQ says firms with IPO ambitions are taking a wait-and-see approach as global economic uncertainty causes instability in markets
Rising inflation, political tension and volatile markets could bring about major disruption to an already flat IPO market, warns EQ (Equiniti), the UK’s leading share registrar.
The global IPO market halved year-on-year in the first quarter as private firms hit the pause button on their float plans amid rising geopolitical tensions in East Europe and a regulatory stand-off between the US and China.
In its latest quarterly IPO Review – which is available from today – EQ reveals how leading global exchanges slowed in the first quarter of 2022 as headline listings and SPACs were pulled due to uncertainty in global markets.
In the first quarter, a modest £410m was raised in London, 95% less than the same quarter in 2021, EQ’s analysis of publicly available data shows.
London was not alone in its struggles, with global IPO proceeds half of what they were a year ago. However, while major exchanges struggled in Q1, smaller exchanges, such as Tel Aviv, proved to be a safer bet during the quarter.
Paul Matthews, CEO of EQ’s Boardroom business believes there is a strong 2022 IPO pipeline in place as long as the tensions currently dogging markets subside.
Matthews adds: “The start of the year has been fairly subdued in terms of IPOs. That’s perhaps unsurprising given the great uncertainty in markets over the past few months.
“Rising interest rates, the Ukraine invasion and increases in regulation between the US and China have caused investors to take some risk off the table, which has hit share prices.
“While the IPO market has not come to a grinding halt, there is a strong pipeline in place for firms with plans to float. However, it seems at present many firms are playing a game of wait-and-see in the hope that conditions improve.”
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About EQ (Equiniti Group)
EQ is a leading international provider of shareholder, pension, remediation, and credit technology. With over 5,000 employees, it supports 37 million people in 120 countries. EQ’s purpose is to care for every customer and simplify every transaction, delivered with less of an impact on the environment.
Find out more: https://equiniti.com/