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IPO activity this quarter was among busiest in two decades

20 October 2020 06:01

A pandemic struck world has something to cheer. The third quarter of the year saw the highest IPO activity.Q3 2020 was the most active third quarter in last 20 years by proceeds and the second highest third quarter by deal numbers, said a report titled Global IPO Trends: Q3 2020 by EY.Exchanges around the world posted 445 IPOs with proceeds totalling $95.0b, which were 77 per cent and 138 per cent higher than Q3 2019, respectively. The stellar record by proceeds can be attributed to the most active August and September for IPOs in the last 20 years, as per the report.Traditionally, the third quarter has been a slow period for IPOs. This year, with fewer people travelling, more working from home and markets awash in liquidity, the US stock markets have hit record highs and global IPO activities have rebounded sharply, the report noted.Paul Go, EY Global IPO Leader said: Although the market sentiments can be fragile, the scene is set for a busy last quarter to end a turbulent 2020 that has seen some stellar IPO performance.As per the report, Indian stock exchanges (BSE and NSE including SMEs) ranked ninth in the world in terms of the number of IPOs in year-to-date 2020, said the EY report.In the main markets (and NSE), there were four IPOs in Q3 2020 versus three IPOs in Q3 2019 and no IPO in Q2 2020. This represents an increase of 33 per cent compared to Q3 2019 and a significant increase in IPO activity as compared to no activity in Q2 2020, it added.Looking ahead, technology, health care and industrials will continue to be the more popular investor choices, along with companies that can demonstrate resilience and adaptation to the current environment, and those that have an opportunistic advantage in the new norm, it said.He was of the view that the US presidential election, as well as the China-US relationship post-election, will be key considerations in future cross-border IPO activities among the worlds leading stock exchanges.Despite the uncertainties, companies and sectors that have adapted and excelled in the new normal should continue to attract IPO investors, he said..
IPO activity this quarter was among busiest in two decades. This article is published at 20 October 2020 06:01 from Sify Indian Business and Finance News, click on the read full article link below to see further details.

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