IPOs slow down globally in Q3 after frenetic 2021 start

KRAFTON

30/09/2021 05:00

By Echo Wang and Abhinav Ramnarayan
    Sept 30 (Reuters) - Initial public offerings (IPO) globally
slowed in the third quarter of 2021 from their previous frenetic
pace, but the number of listings in the first nine months of the
year still was the highest since the dotcom bubble of 2000,
according to Refinitiv data.
    IPOs in the third quarter raised a total of about $94.6
billion, down 26.3% from the second quarter, as activity cooled
due to a summer slowdown and U.S. scrutiny of Chinese listings
following Beijing's crackdown on DiDi Global Inc  DIDI.N  just
days after its New York IPO.
     More than 2,000 IPOs have raised a combined $421 billion
globally year-to-date, a record high, as private companies
rushed to attain the soaring valuations of their publicly listed
peers. That was more than double the proceeds raised during the
same period last year. 
    This number includes IPOs of 486 special purpose acquisition
companies (SPACs) that went public in the first nine months of
the year, raising a total of $127.7 billion.
    "After record levels of SPAC IPO activity in the first
quarter, that market has taken a needed pause. However, we are
seeing early signs of that market begin to normalize and open up
for the right issuers," said David Ludwig, global head of equity
capital markets at Goldman Sachs Group Inc  GS.N .  
    Among the third quarter's high-profile IPOs were trading app
Robinhood Markets Inc's  HOOD.O  $2.1 billion listing in New
York and South Korean software company Krafton Inc that raised
more than $3.7 billion on the Korean stock exchange.
    The largest IPO this year so far is Tencent-backed Chinese
online video company Kuaishou Technology Co Ltd's  1024.HK  $5.4
billion offering. 
    In July, U.S. Securities and Exchange Commission Chair Gary
Gensler asked for a "pause" in U.S. IPOs of Chinese companies
and sought more transparency about their offshore structures and
regulatory risk they face in China. Chinese listings in the
United States came to a standstill as a result. In the first
seven months of 2020, Chinese listings had reached a record
$12.8 billion. L1N2PU1GE 
    Tech listings remained investor darlings even as valuations
were scrutinised more closely. But a greater mix of sectors were
among stock market debutantes. In Europe, Taylor Swift's record
label Universal  UMG.AS  made a highly anticipated debut on the
Amsterdam bourse, the most valuable company to list on the
continent this year. 
    Volvo Cars is also expected to launch an IPO while Daimler
is expected to list its trucks unit to diversify the offering
for stock market investors. 
    Ludwig said IPO activity in the fourth quarter could pick
up. "The backlog (of IPOs) across the street is very robust,
across regions and sectors," he said.

 (Reporting by Echo Wang in New York, Abhinav Ramnarayan in
London; Editing by David Gregorio)
 ((E.Wang@thomsonreuters.com; +1 9172873971; Reuters Messaging:
E.Wang@thomsonreuters.com@reuters.net))