Hi there. It’s Edmund.
The global market for Initial Public Offerings (IPOs) took a huge hit in YTD 2022. No surprise there, given that 2021 was a record-breaking year for the IPO market.
Global IPO volumes fell 46%, with proceeds down by 58% 1H year-over-year, according to EY Global IPO Trends Q2 2022. And the reason? Companies are postponing their IPOs because of the stock market meltdown and geopolitical tensions.
It’s not all doom and gloom, though. Despite a contraction of the global IPO market, Asia is taking the lead in terms of IPO activity. In fact, IPOs on mainland China exchanges have climbed to USD 57.8 billion so far in 2022, the largest ever for such a period.
Another stock exchange in Asia that has fared relatively well is the Tokyo Stock Exchange, which is still open to global firms seeking ticker codes and allows companies to tap the deep liquidity in the region.
In all, positive developments and new policies should revive activity in Asia, according to EY.
We’re keeping a watchful eye on this.
Oh, did I mention that we’re launching a new weekly column—The Bullet. We’ll be covering the good, the bad, and the interesting in the world of tech and startups, no-holds-barred, of course. Check it out here.
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