Asia-Pacific law firms enjoy biggest slice of IPO pie
IPO activity is in a worldwide slump, but new research from accounting giant EY has shown that the Asia-Pacific region is still dominating in public listings.
According to the latest EY report, the Asia-Pacific region accounted for 61 per cent of all IPOs globally in the first quarter of 2016. The region’s dominance is despite an overall slump in IPO activity both in the Asia-Pacific and globally. Overall, global IPO activity was down 39 per cent in volume terms to just 167 listings in Q1 2016 compared to Q1 2015, while the total capital raised worldwide slumped to $12.1 billion, down 70 per cent from Q1 2015. Meanwhile, activity was down a more modest 31 per cent in volume terms and 55 per cent in capital raised in the Asia-Pacific region.
China and Japan led the way in IPO activity over the quarter with 33 and 26 deals respectively, followed by the UK with 13, Australia with 12, and South Korea and India with 11 apiece. Companies in industrials, technology, consumer products and materials dominated the listings field, with healthcare and financials also getting a look in. In total, 102 deals took place in the region in January-March 2016 raising $6.6bn.
‘First quarter results have shown that IPO activity in Asia-Pacific is not immune to concerns over global growth, equity market volatility or fluctuating commodity prices,’ said EY Asia-Pacific IPO leader Ringo Choi of the region’s depressed performance, adding however that ‘the prospects of a swift rebound are positive.’
‘We expect an uptick in IPOs later in the year as investor sentiment strengthens and those companies waiting in the pipeline decide the time is right to come to the public markets,’ he said.
Source: Global Legal Post
