Beautiful Virgin Islands


Global IPOs marred by banks and recession enjoy few bright spots

Global IPOs marred by banks and recession enjoy few bright spots

A banking crisis and worries of a recession have dampened the outlook for initial public offerings (IPOs) this year, prompting companies to slow down their plans to go public in what is likely to result in lower fees for investment banks.

Despite a rebound in fundraising and block trading activity, year-to-date IPO volumes came in at their lowest level since 2019. Stock market flotations worldwide have raised close to $26 billion so far, according to data from Dealogic.

The lacklustre performance of some early IPOs, including that of German web hosting provider IONOS (IOSn.DE), combined with the stock market sell-off triggered by the collapse of Silicon Valley Bank, has forced several companies to delay the roll-out of their flotation plans.

Equity capital markets (ECM) advisers, however, are optimistic of a recovery in listing activity in the latter part of the year.

In the United States, IPO volumes jumped more than 50% from the fourth quarter of 2022, but were still 11% down from the same period last year.

IPOs briefly flickered back to life in February, as companies including solar tech firm Nextracker (NXT.O) and Chinese sensor maker Hesai Group (HSAI.O) pushed ahead with their listings.

"Realistically speaking, we're looking at the back half of the year as a starting point (for an IPO market reopening)," said Keith Canton, head of ECM for the Americas at JPMorgan Chase & Co (JPM.N).

A bright spot for IPOs was the energy transition industry, where the pipeline is expected to remain robust, according to IPO bankers.

"We (also) expect some high quality and long-standing consumer assets to emerge once market volatility dissipates," said Daniel Burton-Morgan, head of the Americas syndicate for ECM at Bank of America (BAC.N).

Further cross-border deals, including the long-anticipated IPO of SoftBank Group Corp's (9984.T) British chipmaker Arm, may also help boost U.S. volumes in 2023.


RECOVERY DELAYED


In Europe, investment bankers said the market volatility spurred by the banking crisis is likely to affect the pipeline of deals.

"What's happened with banks has led to a big pick-up in volatility in equity markets. Enthusiasm has fallen back again, but there will still be IPOs before summer – it very much depends on the individual company," said Andreas Bernstorff, head of ECM in EMEA for BNP Paribas (BNPP.PA).


For instance, German lender OLB, backed by Apollo Global Management (APO.N), and Swiss skincare specialist Galderma, have put their IPO plans on hold due to the current market conditions, according to people familiar with the matter.

Some, however, are hopeful of a pickup in market sentiment before the next wave of deals are launched.

Gambling firm Lottomatica, which is also backed by Apollo and furniture group Italian Design Brands, are among a handful of companies that are still pushing ahead with their plans to go public in the second quarter, sources said.

Lottomatica is looking to sell upwards of 400 million euros ($435.08 million) of new shares to bring down debt, plus an undetermined amount of existing stock, sources added.

"Had these events (the banking crisis) happened this time next month, when the IPO window opens, that would've been a lot more damaging," said Lawrence Jamieson, head of EMEA ECM at Barclays (BARC.L).


The Middle East was another bright spot for listings as several well-known names including Oman oil driller Abraj Energy (ABRJ.OM) and Adnoc Gas (ADNOCGAS.AD) in the United Arab Emirates (UAE) launched their flotations.

"The Gulf region has so far been immune to the nervousness that has rattled European markets, so we expect to continue to see IPOs coming out of countries like Saudi Arabia and the UAE," said Chris Laing, who oversees HSBC's (HSBA.L) ECM activities across Central and Eastern Europe, Africa and the Middle East.

While shares sales in Asia-Pacific witnessed a 19% drop in volumes, the region still made up for about half of global equity capital markets activity, including a roughly $9 billion stake sale in Japan Post Bank (7182.T).

Spokespeople for Apollo and Lottomatica declined to comment. OLB did not respond to a request for comment.

($1 = 0.9194 euros)

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Bodyguard of UK Prime Minister Arrested for Alleged Election Betting
I have a dream, MLK inspiring speech
Global Displacement Crisis: Record Numbers in 2023
Aretha Franklin, Marvis Staples - Oh Happy Day
Muslim Community Leader Criticizes Nigel Farage for Undermining Muslims
BVI Freedom Song
Melinda Gates Discusses 'Horrible' Divorce from Bill Gates
Billy Preston - You Can't Beat God Giving (Live)
Child Obesity Surge in England: A Deep Concern
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
U.S. Sues Adobe Over Hard-to-Cancel Subscriptions
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
Deadly Heat Wave Claims Dozens of Lives During Hajj Pilgrimage in Mecca
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Here are today's top worldwide stories you don’t want to miss:.
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
World’s Largest Pilot Union Calls to Eliminate Terms Like ‘Cockpit’ and ‘Manpower’ for Equity
Hello Dolly
Woman Suing UK Intel Services Denies China Spy Allegations
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
Iran Sentences Nobel Laureate Narges Mohammadi to 1-Year Prison Term for Propaganda
Bob Marley - Get Up Stand Up
News roundup
Yes He Can
Good day, everyone! We've got some gripping stories for you today, spanning from the Middle East to Europe, and even a touch of Hollywood.
What A Friend We Have In Jesus
Britain’s Refugee Visa Rules Stranding Children in War Zones
Unforgettable
UK Elections Predict ‘Electoral Extinction’ for PM Sunak’s Conservative Party
Touch The Hem Of His Garment
Italian Activist Ilaria Salis Returns Home After Election to European Parliament
The Lord's Prayer
Good morning!
THE GOD MOVEMENT...BEAUTIFUL BVI
England Faces Serbia in Euro Opener with Defensive Concerns
Siyahamba
Dermatologist Warns Against Sunbed Usage
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
Fake Pro-Reform UK Social Accounts and Their Influence on Elections
Ramblin' Rose
UK Man Jailed for Non-Consensual Condom Removal
Protoje - Who Knows ft. Chronixx
Reform UK Surpasses Conservatives in Historic Poll
Pressure - Virgin Islands Nice
US, Britain, Canada Accuse Russia of Interference in Moldova’s Election
Phil Wickham - House Of The Lord
Taylor Swift Fans Create Seismic Activity in Edinburgh
My God Is Real (Yes, God Is Real)
Sunak Aide Under Investigation for Election Bet
The Lion King Circle of Life by LEBO M. — LIVE at the HAVASI Symphonic
Labour Leader Starmer Focuses on Wealth Creation for Upcoming UK Elections
Louis Armstrong - When The Saints Go Marching In
G7 to Use Frozen Russian Assets for $50 Billion Ukraine Aid
Kanye West Sunday Service - hallelujah, salvation, and glory
Anti-Israel Irish MEP Clare Daly LOST her seat in the EU Election
Jonathan Nelson - I Believe (Island Medley
Johnson & Johnson Settles Talc Safety Claims for $700 Million
From The Virgin Islands Sqad Up
EU Urged to Welcome Skilled Russians to Weaken Putin
Common, John Legend - Glory
EU Elections Overview: Far-Right Gains and Major Political Shifts
Anthony Evans vs. Jesse Campbell - If I Ain't Got You
Israel Rescues Four Hostages from Gaza
I have a dream, MLK inspiring speech
Emmanuel Macron Calls for Snap Election
Aretha Franklin, Marvis Staples - Oh Happy Day
Jordan Bardella: Young Far-Right Leader Poised for Future Political Influence in France
BVI Freedom Song
World's Oldest Privately Owned Book Auctioned for $3.8 Million
Billy Preston - You Can't Beat God Giving (Live)
Animal Rights Activists Deface King Charles' Portrait in Protest
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
Dutch Military Intel Uncovers Extensive Chinese Cyber Espionage
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
Turkish Student Arrested for Using AI to Cheat in University Exam
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Rise in Dengue and Other Mosquito-Borne Diseases in Europe Due to Climate Change
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
EU Elections Overview: Far-Right Gains and Major Political Shifts
Hello Dolly
Far-Right National Rally Dominates France's EU Vote
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
Macron Calls Snap Legislative Elections After Far-Right Victory
Bob Marley - Get Up Stand Up
Far-Right Gains Significantly in EU Election
Yes He Can
UK Job Market Shows Signs of Recovery
What A Friend We Have In Jesus
Orban’s Fidesz Party Wins Majority in Hungary’s EU Elections as New Challenger Emerges
Unforgettable
Meloni's Far-Right Party Wins European Elections in Italy
Touch The Hem Of His Garment
Key Insights from the European Union Elections
The Lord's Prayer
European Union Elections and Rise of Far-Right Parties
THE GOD MOVEMENT...BEAUTIFUL BVI
England Loses Over 260,000 Social Rent Homes in a Decade
Siyahamba
Campaigners Urge Government to Block Shein's FTSE Listing
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
×