Renaissance Capital's 3Q 2015 Global IPO Review

Due to heightened market volatility stemming from economic growth concerns in China and uncertainty surrounding an interest rate hike in the United States, the global IPO market slowed dramatically in the third quarter. IPO issuance stagnated as quarterly proceeds plummeted 77% year-over-year to $13.6 billion, the lowest quarterly proceeds level since the 1Q12. Excluding Alibaba’s mega IPO in 3Q14, quarterly proceeds were still down 63% year-over-year. IPO proceeds were led by the North American and Asia Pacific regions, which accounted for 37% and 34% of quarterly proceeds, respectively. Chinese issuance came to a standstill from the rapid pace in the first two quarters of 2015 as the country’s government suspended domestic offerings in an effort to stabilize equity markets. IPOs generated a modest 3.2% average return. However, aftermarket performance was poor, as measured by the Global IPO Index, which returned -14.9% in the 3Q15. Despite turbulent equity markets, several multi-billion dollar listings still hope to tap equity markets before year-end.

View our 3Q 2015 Global IPO Review