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Renaissance Capital's 2Q16 Global IPO Market Review

June 28, 2016

Global IPO activity experienced a modest recovery from the first quarter of 2016, with issuance totaling $22.5 billion in the 2Q16, more than double the 1Q16 total but a 56% drop year-over-year. Investors continued to be cautious as they weighed uncertainties over possible US interest rate hikes, the Brexit vote and China’s slowing economy. Despite European IPOs taking a quarter-end battering following Britain’s unexpected decision to leave the EU, overall IPO returns stayed positive at 7.9%, excluding high-flying China A-shares. Europe took the IPO crown from Asia Pacific, raising $10.6 billion, or 47% of total proceeds, as poor returns derailed the normally active Hong Kong market. Notably, IPO activity picked up in New York after a 1Q shutdown as a wider range of companies accepted lower valuations and braved the markets to raise $4.7 billion. As global markets now reel from the Brexit vote, we expect a pause in the tentative IPO market recovery. However, a number of large deals wait in the wings, and the solid performance of IPOs to date should encourage companies anxious for liquidity step forward.

View our 2Q16 Global IPO Review PDF