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    Saturday 20 July 2019
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    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
    E: bgoldman@nexiacourt.com.au

    Henry Tan, Nexia TS, Singapore
    T + 65 6534 5700
    E henrytan@nexiats.com.sg

    Alex Castelli, CohnReznick
    E: alex.castelli@cohnreznick.com

    Stephen Drew, Smith & Williamson
    T: +44 (0) 207 131 4056
    E: stephen.drew@smith.williamson.co.uk

    PR enquiries:
    Steve Smith
    Thirdperson Words
    T +44 7980 584049
    E stevesmith@thirdpersonwords.co.uk

    Note to editors:

    Nexia International is a leading worldwide network of independent accounting and consulting firms, providing a comprehensive portfolio of audit, accountancy, tax and advisory services.

    Nexia International does not deliver services in its own name or otherwise. Nexia International and its member firms are not part of a worldwide partnership. Nexia International does not accept any responsibility for the commission of any act, or omission to act by, or the liabilities of, any of its members. Each member firm within Nexia International is a separate legal entity.

    Nexia International does not accept liability for any loss arising from any action taken, or omission, on the basis of the content in this article or any documentation and external links provided. Professional advice should be obtained before acting or refraining from acting on the contents of this article.

    Any and all intellectual property rights subsisting in this document are, and shall continue to be, owned by (or licensed to) Nexia International Limited.

    References to Nexia or Nexia International are to Nexia International Limited.

    For more information, visit www.nexia.com.

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