IPO market falls again – a country bucking the trend

Frankfurt In Europe, fewer and fewer companies are daring to go public. In the second quarter of this year, too, there has not yet been a thoroughgoing improvement. In view of the geopolitical and economic uncertainties, the executive boards in the companies are still waiting.

A total of 310 companies worldwide dared to go public in the second quarter – that was three percent less than in the similarly weak quarter of the previous year. The issue volume also continued to shrink: by five percent to 39.0 billion dollars, according to the IPO barometer of the auditing and consulting company EY. The abbreviation IPO stands for Initial Public Offering, i.e. the new issue of shares.

The development was very different worldwide. In China, the number of IPOs was up 28 percent and issuance volume up 10 percent.

In Europe, companies are less optimistic: the number of IPOs fell by 27 percent to 33 IPOs. However, the issue volume climbed by 58 percent to $2.7 billion.