The value of initial public offerings globally has fallen by about a third this year compared to the same period in 2015, illustrating the difficulties new listings have faced during a period of market volatility and political uncertainty.
According to data from Dealogic, the total value of stock sold via new listings has hit its lowest level since 2009.
In the UK alone the value of new listings has fallen by 60 per cent as companies shied away from coming to the market before the EU referendum. The downward trend is also evident in the rest of Europe and the US where volumes have fallen by close to 45 per cent in both regions.
Several of the big deals launched in Europe have faltered. The sale of Spanish telecoms company Telefónica’s infrastructure unit was shelved after the deal failed to attract sufficient investor interest and while the sale of Danish payments processor Nets was oversubscribed its share price fell after listing.
Bankers, however, have been hoping for a period of stability between the end of the summer lull and the US elections when they could get deals away.
“Global IPO markets have picked up the pace since the beginning of September,” said Steve Pearce, global head of equity capital markets with Goldman Sachs. “There have been a number of smaller deals in the US with some large transactions on the road in Europe.”
He added that investors’ skittishness was balanced by their desire to generate returns before the end of the year.
The market is “healthy but discerning”, said Gareth McCartney, head of European equity syndicate at UBS.
A number of deals have come to market unscathed. Duch food delivery start-up Takeaway.com priced its new shares on Friday while the potential €5bn IPO of Germany energy group RWE’s green business Innogy was oversubscribed shortly after books opened earlier in September. It begins trading on October 7.
In total $82.5bn of new stock has been sold through IPOs in the year-to-date, down from $123bn in 2015 and $190bn in 2014. Deal value was only lower in 2008 and 2009 during the financial crisis.