The global initial public offering (IPO) market, which has been frozen due to tightening, is gradually recovering. As the global tightening cycle that began in the U.S. is nearing its end, large IPOs that have been virtually “hold” are resuming one after another. Asian countries, including China, which is expected to start full-fledged reopening (resumption of economic activities), are leading the IPO boom. The European stock market, which was close to dying due to the war in Ukraine, is also gradually warming up.
According to Bloomberg News’ tally on the 23rd, the global IPO market was about $25 billion between March and April this year, nearly twice as large as in January and February (about 13.8 billion dollars). Most of the funding came from Asia. In April, $7.6 billion, or nearly 80% of the total procurement ($10 billion), is based on IPOs in the region. The amount of IPO procurement in Asia soared to $3.8 billion in January, $5.7 billion in February, and $10.3 billion in March this year.
Unlike last year, when large IPOs were concentrated in China, the recovering scope of the region has expanded this year. Two mining companies have been listed in Indonesia alone, the world’s largest nickel holder and producer. Harita Nickel, a subsidiary of Harita Group, is considered the biggest fish in the Indonesian IPO market this year. The company, which was listed on the 12th, attracted 9.997 trillion rupiah through this public offering. On the 18th, another nickel producer, Merdeka Battery Materials, raised 9.2 trillion rupiah through an IPO.
In addition, Rakuten Bank, a subsidiary of Rakuten Group, was listed in Japan on the 21st. On the Tokyo Stock Exchange, the company’s stock price soared 38% from the initial public offering price (1,400 yen) to 1,30 yen, making it a success. In the Hong Kong stock market, Chinese liquor company ZJLD is set to be listed on the 27th. It is the first time for a baiju manufacturing company to be listed on the stock market outside mainland China, and plans to raise HKD 6.37 billion. It is considered the largest IPO on the Hong Kong stock market this year.
Signs of recovering conditions are also detected in the European IPO market. Following Italian companies such as lottery company Rotomatica and electric vehicle parts maker Eurogroup Laminations, German web hosting company Ionos raised $300 million to $600 million in the stock market at the beginning of the year.
The U.S., which is increasingly concerned about an economic slowdown, has a conflicting atmosphere. The cumulative funds raised through IPOs in the U.S. stock market so far this year are $4.1 billion, 51% less than the same period last year. Three companies – solar company Nextracker, natural gas producer Atlas Energy Solutions and Israeli-based solar and wind power company Inlight Renewable Energy – accounted for a third of their total procurement.