The IPO boom is happening alongside a flurry of special purpose acquisition company (SPAC) listings, which have raised an additional $97.6 billion thus far in CY21, the Refinitiv report suggests.
In terms of popularity, NASDAQ
remains the most sought after destination for IPOs by both proceeds and by number of deals, followed by New York, Hong Kong, London and Shanghai. Almost one in every five IPOs thus far during CY21, according to the report, has been in the technology sector, with these new listings accounting for 27 per cent of total proceeds raised this year.
“A record $33.9 billion has been raised on Nasdaq
so far during 2021, more than five times the proceeds raised during the same period last year and the highest year-to-date total since our records began in 1970. A total of 105 new listings have been recorded so far during 2021, a 300% increase in the number of listings from this time last year and a number last exceeded 21 years ago during the dot-com boom,” the Refinitiv report said.
Given the Indian government’s ambitious divestment agenda of Rs 1.75 trillion, which includes stake sale plans in the country’s largest life insurer – Life Insurance Corporation of India (LIC) – most analysts expect a blockbuster year for the Indian primary market.
"This could be another major year for equity raising through IPOs. We continue to see a substantial pipeline of transactions that are at various stages of execution. As India’s economic growth accelerates, we shall witness a large number of high quality promoters tapping the capital markets," says R Venkataraman, chairman, IIFL Securities.
However, the uncertain market conditions can push the bulk of the IPO / primary market activity to the second half of this fiscal, including part offloading of stake by the government in select enterprises, analysts say.
“Promoters and retail investors are likely to remain in a wait-and-watch mode till the Covid infection rate comes down and the stock markets
stabilise. This can push the IPO activity to the latter part of the year. Besides attractive pricing, a stable market is necessary for the IPOs to succeed,” explains G Chokkalingam, founder and chief investment officer at Equinomics Research.
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