(News Bulletin 247) – Between March and April, the amount of funds raised worldwide almost doubled compared to the first two months of 2023, notes Bloomberg. The recent recovery of stock market indices has motivated a few companies to enter the financial markets, particularly in Asia.

Still recovering, the global IPO market is showing slight signs of recovery, notes Bloomberg. The recent rebound in financial markets has had the effect of encouraging companies “to test investors’ appetite for new listings”, particularly in Asia, the agency explains.

According to data compiled by Bloomberg, the total amount of IPOs reached around $25 billion in March and April, cumulatively. It represents almost double the funds raised during the first two months of the year, when operations had practically been put on hold. According to analysts quoted by Bloomberg, some issuers have seen in the drop in market volatility “a window of opportunity” to go public.

A ray of hope in Europe?

Activity was particularly buoyant across Asia, unlike 2022, when the majority of large-scale operations were concentrated primarily in mainland China. Rakuten Bank made a strong debut on the Tokyo Stock Exchange last week, with the stock rising 40% on its first day of trading. Demand was strong for the largest IPO in the Land of the Rising Sun since Softbank in December 2018.

In mid-April, ten new Chinese companies joined the Shanghai and Shenzhen markets, thanks to relaxed regulations in terms of IPOs. And this life-size test was more than convincing. The first listings of these companies got off to a flying start with shares soaring 200%.

“The IPO market is gradually and slowly coming back. It’s not 100% back yet, but there are signs of life and renewed vigor,” co-head of IPO markets James Wang told Bloomberg. Equity at Goldman Sachs Group for Asia ex Japan.

In Europe, the IPO market is still not very active. In the first quarter, the amounts raised in the EMEIA region (Europe, Middle East, India, Africa) plunged by 36% over one year, according to the quarterly study by the firm EY published last month.

The poor stock market debut of companies recently listed has put off both companies applying and investors to participate in these fundraisers. Moreover, the turmoil on the banks in March weighed. The failure of Silicon Valley Bank and the sudden collapse of Credit Suisse sent shock waves through the financial markets. This episode thus heightened investors’ concerns about interest rates and inflation, and further complicated already precarious IPO plans.

A slight glimmer of hope could come from the latest operations carried out on European soil, underlines Bloomberg. The press agency reviews in particular the recent IPOs of the German web hosting group Ionos and the Italian manufacturer of electric motor components EuroGroup Laminations. These two companies have successfully raised over $400 million.

A slow start to the year in Paris

On the other side of the Atlantic, on the other hand, the climate remains gloomy and the outlook remains “complicated”. The funds raised since the beginning of the year remain 51% lower than those observed last year at the same period specified by Bloomberg. The IPOs of market leader in smart solar trackers Nextracker, logistician for the oil and gas industry Atlas Energy Solutions and renewable energy specialist Enlight Renewable Energy together account for a third of the $4.1 billion raised since the beginning of the year.

To talk about the French market, only two companies have listed on the Paris Stock Exchange this year, namely Lepermislibre, a specialist in learning to drive online, and the potting soil manufacturer Florentaise, with unattractive results. Shares of both companies have fallen more than 12% since their IPOs. The energy brokerage specialist for companies, Mon courtier énergie, recently announced its desire to join the Parisian market.

Larger groups could also take their first steps on the stock market by the end of the year. Renault still plans to market part of the capital of Ampère, its future subsidiary dedicated to electricity, at the end of 2023. Atos, for its part, intends to introduce the majority of the capital of Evidian, a company which would combine the activities in growth of the digital services business, such as big data, high performance computing, digital transformation and cybersecurity.

Sodexo also intends to list its meal and gift voucher business on the stock exchange in 2024. For its part, Pathé aims to join the Paris Stock Exchange by 2024. The oldest French cinema founded by the Pathé brothers in 1896 wishes to attract new shareholders in order to finance major investments in both theaters and content.