Public registrations (IPOs) have collapsed this year, due to the increased business uncertainty from US duties, increased market instability and higher interest rates that have increased the cost of funding and have made IPO less attractive to publishers, the Reuters news agency notes.

According to LSEG data, on June 17, the global volume of public registrations had decreased by about 9.3% annually to $ 44.3 billion, the lowest level of the last nine years.

Abrupt decline in Europe

The volume of initial public registration (IPOs) in the US decreased by 12% to $ 12.3 billion, while Europe has reduced a steeper decline of 64% to $ 5.8 billion.

On the contrary, the volume of initial public registration in Asia-Pacific has increased by 28% to $ 16.8 billion this year.

Trump duties

The duties of President Donald Trump, who included a general contribution of 10% plus targeted duties to US trade partners, rekindled tensions in April.

Despite the subsequent cessation and trading and duty negotiations, businesses worldwide are uncertain about demand and investment.

“It is not prudent for companies to import the Stock Exchange right now. Market volatility is unprecedented, “said Isabel Fraidheim, founder and chief executive of Athena Capital.

“There is a real risk to technology companies that are still trying to find profitability. If the share retreats after the original public offer (IPO), it is very difficult to recover, especially for companies with less stable cash flow or that are not so mature, ”he added.

Despite the wider deceleration, China and Japan have seen a sharp increase in new import imports due to the relaxation of regulatory arrangements and climate improvement.

The Chinese Catl battery giant, which raised $ 4.6 billion in the world’s largest IPO in the world so far, stood out.

At the same time, some analysts are moderately optimistic about the recovery of the second semester. Interest in public registrations in the US shows signs of recovery, led by Fintech Chime, which rose on its debut.

High profile names such as Klarna, Gemini and Cerebras are to be entered into the Stock Exchange later this year.