Mixed outlook for global mid-market IPO activity
There were mixed levels of IPO activity around the world during the first half of the year, according to a new report by Nexia International, a top ten network of independent accounting and consulting firms.
The report examines mid-market IPO activity on a selection of stock exchanges around the world during the first half of 2015. A panel of experts drawn from Nexia International member firms in Australia, China, Singapore, the UK and the US considered the outlook for the mid-market in their respective countries and some of the key issues affecting corporate activity in those markets.
Nexia’s report shows that while Australia and China have seen a significant increase in activity compared with the same period in 2014, there was a drop in IPOs in Singapore, the UK and the US.
As a barometer of world economies in general, current IPO activity points to diverging levels of business and investor confidence.
Brent Goldman, corporate advisory partner at Nexia Australia, a member firm of Nexia International, says: “Since the second half of 2014 there has been a significant increase in IPO activity in Australia and this is reflected in businesses from a wider range of sectors seeking to raise funds through an IPO. This indicates improving business confidence.”
Henry Tan, managing director of Nexia TS, a member firm of Nexia International with offices in China and Singapore, says: “The increase in IPO activity underlines the demand for funding among China’s mid-market companies, which in turn support the country’s economic growth.”
Henry adds: “In Singapore equity fund raising has slowed down – a reflection of the economy trending lower as well as market restructuring, as more IPO aspirants look at different exchanges for comparisons. On the basis of the work in progress, we expect that there will be more IPOs in the second half of 2015.”
In the US, however, although economic conditions are generally supportive of a strong IPO market and the IPO window remains open, the lure of private investors flush with cash may be too great for companies once destined for the public markets.
Alex Castelli, a partner at CohnReznick, a member firm of Nexia International in the US, says: “When taking into consideration the increase in the availability of private capital and the costs and regulatory requirements associated with becoming a public company, fewer business executives are choosing an IPO.”
Stephen Drew, a partner at Smith & Williamson, a UK member firm of Nexia International, says: “Following the UK election in May, investors will have been re-assessing their short to medium term prospects and we would expect an increase in the level of investment activity.”
The full report is available here, click here.
For more information, please contact:
Brent Goldman, Nexia Australia
T: +61 2 9251 4600
Henry Tan, Nexia TS, Singapore
T + 65 6534 5700
Alex Castelli, CohnReznick
Stephen Drew, Smith & Williamson
T: +44 (0) 207 131 4056
T +44 7980 584049
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