DO TRADITIONAL IPOs HAVE A FUTURE? Primary listings

摘要

DESPITE ENDING WIYH SAUDI ARAMCO'S RECORD-BRAKING $25.6BN CAPITAL RAISE in December, 2019 was not a blockbuster year for initial public offerings (IPOs) at a global level. A total of 950 IPOs took place, raising $165.6bn: a four-year low by volume and the lowest number of deals within the past five years, according to Dealogic. Add to this the lacklustre performance of several high-profile tech stocks since their 2019 debuts, as well as the dramatic collapse of much-hyped co-working spaces provider We Work's planned IPO in September, and it was a somewhat bumpy year. Such circumstances have led to questions about the health of the IPO model, particularly given the ready availability of private equity capital and a perception that some companies are opting to stay private.Last year's jittery geopolitical and economic backdrop hardly helped calm the market. It is, however, important to note that while 2019 was full of challenges, it was far from a washout. A number high-profile transactions came to market and, at a regional level, the US had a strong year. US exchanges hosted IPOs worth $58.4bn, a 15% year-on-year increase, and more than the total raised on exchanges in Asia-Pacific or Europe, the Middle East and Africa (EMEA) collectively. In general, the US economy continues to perform well and its stock markets remain at historic highs.