Public registration markets in 2020, recovered to pre-pandemic levels, setting a new record The number of public registrations in 2020 increased by almost 20%, and revenues by 29%, compared to 2019 October 2020 was the most active October of the last 20 years, based on the number of transactions
Despite the uncertainty that characterized 2020, public subscription activity proved resilient to the effects of the COVID-19 pandemic, supported by low interest rates and expansionary monetary policies. The number of public subscriptions continued to grow, reaching 1,363 worldwide, an increase of 19%, while the funds raised were increased by 29% compared to the same period last year, reaching $ 268 billion. This strong performance of public subscriptions shows that international financial markets are still a platform for businesses to access public funds.
The technology sector maintained its lead in terms of number of transactions, as well as capital, finishing the year with 324 public subscriptions and $ 89.1 billion respectively. The industry followed in second place with 243 deals and $ 31.4 billion, followed by the health industry with 235 public subscriptions and revenue of $ 50.4 billion. These findings are included in the quarterly report of EY, EY Global IPO Trends: Q4 2020.
The US Continental Public Registry Adapts to 2020 Conditions, Demonstrating Durability
The dynamics of public registrations on the American continent remained positive in the fourth quarter of 2020, ending the year with 282 public registrations that raised $ 97.9 billion, marking an increase of 30% and 78% respectively, compared to the same period last year. space. The health sector remained stable, with 40% of total global trade completed in the region, with 114 public registrations raising $ 27.9 billion during 2020. The technology sector followed with 77 public registrations raising $ 40.4 billion, followed by industry, with 19 public subscriptions and $ 8 billion for 2020.
Asia-Pacific markets remain strong despite COVID-19 pandemic
Despite the difficult year, the registration activity in 2020 in the Asia-Pacific region exceeded the performance of 2019, recording an increase of 20% (822) in terms of the number of transactions, and by 45% ($ 136.2 billion) in terms of revenue. In fact, the region recorded the highest revenue since 2010. The industry recorded the strongest performance, with 181 public subscriptions translating into revenue of $ 20.8 billion, followed by the technology sector, with 180 public subscriptions and $ 38 , $ 7 billion in revenue, and the raw materials sector, with 95 public subscriptions and $ 7.4 billion.
Candidate companies in Europe, the Middle East, India and Africa (EMEIA) took advantage of the open window of opportunity
The EMEIA region developed dynamically in the fourth quarter of 2020, despite the strong second wave of the COVID-19 pandemic. During the year, 259 public subscriptions were completed in the EMEIA area, raising $ 33.9 billion in revenue, up 7% and down 43%, respectively.
In Europe, the market continued to grow, with total trade growing by 23% and revenue by 9% year-on-year.
Prospects for the first quarter of 2021: markets are expected to maintain their momentum
As vaccine availability boosts optimism, and companies take advantage of high levels of liquidity, global public record markets will remain healthy and likely to remain dynamic for the first half of 2021. Geopolitically, the agreement on Brexit favors the positive psychology of the subscription market, as individual agreements between the EU and the UK continue to take shape. While the window of opportunity remains open, IPO companies will need to be vigilant for possible regulatory changes, a possible market correction resulting from rising price volatility, and the pace of global recovery from the COVID pandemic. 19.
Commenting on the findings of the research, Stelios Dimitriou, Partner and Head of Trading Consultants of EY Cyprus, states: “Despite the effects of the pandemic, the public registration markets, as a whole, have proven resilient and adaptable. After a period of high volatility and unprecedented uncertainty, we saw a strong recovery in global public registrations in the fourth quarter of 2020, with the result that total activity for 2020 exceeded annual expectations and the levels of 2019. With the continuing dynamics, the Expected vaccine efficacy, high ratings and lower levels of volatility all predetermine a strong 2021 for global enrollment. “Candidates for public registration must show resilience and ensure the level of environmental, social and intergovernmental standards that investors expect.”
