TORONTO, ON / ACCESSWIRE / January 4, 2021 / Kansai Halifax Holdings recently released the report on 'IPOs Rebounding Sharply, Hitting Historic Highs in Q3'. Initial public offerings (IPOs) is seeing the most successful third quarter of sales in the last 20 years, and the second-highest third quarter of transaction figures, as travel decreased, work from home and markets remained overflowing in cash.
Year-to-date, IPO operation increased in Q3 2020, resulting in a 14 per cent rise in overall IPOs to 872 and an unprecedented 43 per cent increase in sales of $165.3 billion.
"Although market sentiment can be fragile, the scene is set for a busy last quarter to end a turbulent 2020 that has seen a strong IPO performance," commented Michael Taylor, Director of Capital Markets at Kansai Halifax Holdings. "The US presidential election, as well as the China-US relationship post-election, will be key considerations in future cross-border IPO activities among the world's leading stock exchanges. Despite the uncertainties, companies and sectors that have adapted and excelled in the 'new normal' should continue to attract IPO investors," he added.
The Americas witnessed 188 IPO deals generate $62.4 billion in revenues, up 18 percent and 33 percent respectively, while Asia-Pacific saw 554 IPOs raise $85.3 billion in revenues, up 29 percent and 88 percent respectively. Both stocks have now surpassed the YTD 2019 stage.
Although the EMEIA region (Europe, Middle East, India, Africa) grew quarter-on-quarter, the region is still down by 27 percent in IPOs (130) and by 24 per cent in revenues ($17.6 billion). Cross-border IPO activity volumes remained stable on the basis of contract numbers and sales, accounting for 8% and 10% of international IPO operations respectively.
"Technology saw 210 IPOs raise $53.9 billion, industrial saw 168 IPOs raise $23.3 billion, and health care saw 159 IPOs raise $33.3 billion," commented Jonathan Scott, Director of EMEA Wealth Management at Kansai Halifax Holdings.
IPO operation in the Americas has gained traction year-to-date with a rise of 18 per cent in IPOs (188 cumulative transactions) and an increase of 33 per cent in sales ($62.4 billion) in excess of 2019 YTD levels.
Whereas the medical sector leads YTD in terms of number of IPOs (71), the technology sector is leading sales, collecting $22.3 billion over the quarter in the Americas. The Americas proved to be the center of unicorn IPOs, with the unveiling of 12 of the 18 IPOs by 2020 alone in Q3.
So far this year, the Asia-Pacific IPO operation exceeded both volume (29%) and revenues by YTD 2019 (88 percent). Operation in the field has increased, in part due to COVID-19 pandemic government stimulus policies.
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SOURCE: Kansai Halifax Holdings