IPO market ‘upstream’, capital mobilization increased 45% over the same period

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Although the Covid-19 translation seriously affected the global economy, but the IPO market (the first time issuing shares to the public) in the Asia-Pacific region still grew upstream, total mobilization capital in 2020 will increase 45% compared to the same period of the previous year, reaching 136.2 billion USD, recording the highest level since 2010.

In terms of quantity, by 2020, the Asia-Pacific region will carry out 822 IPOs, the most since 2017.

According to the global IPO trend report published by Ernst & Young on January 21, IPO activities in the fields of technology ($ 38.7 billion), industry ($ 20.8 billion) and materials (7 , 4 billion USD) was the most exciting place.

Ernst & Young La Cam Vi’s director of ASEAN regional IPO services, said that although the epidemic has a heavy impact, the Asia-Pacific IPO market will remain resilient in 2020. Obviously, The fiscal stimulus policies of the governments, the low interest rates, the abundant liquidity and the introduction of vaccines have formed an effective buffer.

In 2020, the three major stock exchanges of China, including Hong Kong, Shanghai and Shenzhen, conducted 536 IPO deals with a total capital mobilization of 119.1 billion USD, accounting for 87.4% of the area. The Asia-Pacific region, whether in terms of number of deals or total capital raised, outstripped other exchanges in the region, making it into the top 5 globally.

The report emphasizes that, with the US presidential election, investors will light up hope again, hoping that the new administration can loosen supervision requirements for listed Chinese companies. listed on the US stock exchange. Investors’ optimism has contributed to an increase in the number of IPOs and the amount of capital raised in the fourth quarter of 2020 on Chinese exchanges.

Meanwhile, although the number of IPOs and ASESAN’s capital mobilization in the fourth quarter of 2020 increased slightly compared to the previous quarter, the average transaction size increased sharply, forecasting that 2021 would be more welcome. mid-range IPOs, instead of just small IPOs.

However, from a 2020 perspective, the number of IPOs and ASEAN’s capital mobilization decreased by 13% and 5%, respectively. In particular, the Thai market mobilized the most capital, up 33% over the same period last year to 4.9 billion USD, at the same time there were 2 IPO deals with over 1 billion USD.

Capital mobilization in Singapore market dropped 58% to 1 billion USD, but still ranked 2nd in ASEAN.

According to statistics of Ernst & Young, in 2020, the Asia-Pacific region will complete 822 IPO deals, the highest level since 2017, the average increase in transactions on the first day of listing on the market. recorded the highest level in the past 10 years, reaching 58%. This shows that there are many small investors entering the market and showing signs of speculation.

Regarding the global IPO market, in 2020, there are 1,363 IPOs, an increase of 19% over the same period in 2019, the amount of mobilized capital is 268 billion USD, up 29%. Main partner of global listing services of Ernst & Young Ngo Ke Long said that 2020 there are too many unexpected events, in the first 6 months of the year, the market has the most severe volatility since the global financial crisis. Up to now, but quickly recovered, the IPO market closed in 2020 with bright signals.

According to expert Ngo Ke Long, despite facing the pandemic, global IPO activities still maintain vitality, demonstrating the strength of the stock market, capital markets and IPO activities that have supported businesses. industry achieves a high growth rate.

Thanks to the impetus of fiscal stimulus policies, ample liquidity and optimistic sentiment from the introduction of Covid-19 vaccine, the IPO market will continue to maintain its growth trend in the first 6 months of this year. However, investors should also be wary of market corrections, especially those whose share prices soar in 2020.

Source: vietnamfinance.vn – Translated by fintel.vn