IPOs: market shrinks by Corona significantly

The Corona-crisis has already left now anywhere in the world, clear traces. This is also true for the market of IPOs. The emission volume of the company declined in the second quarter by almost a third. The number of stock market debuts is like to be a little clearer. In the various regions of the world, Europe was affected by the decline in the most, but there are exceptions. These are some of the results of an analysis of the auditing and consulting company EY.

Kerstin Papon

editor in the economy.

the issue volume of IPOs declined, therefore, in the second quarter, by 32 per cent to 41.1 billion dollars (about 36.7 billion Euro). The number of companies that had made the leap to the stock exchange, have declined compared to the same period last year to 186 - a decline of 39 percent. Especially in Europe and the United States, significant declines were observed. Measured by the volume of emissions in Europe, a decline of 55 per cent to 6.6 billion dollars, while the number of transactions fell by 60 percent to 22.

In America, the volume of emissions fell by 45 per cent to 15.1 billion dollars, the number of IPOs fell by 38 per cent to 40. The Chinese market to be turned against the General Trend and put – as in the first quarter, again. The issue volume rose by 54 percent to 17.9 billion dollars and the number of IPOs by 28 percent to 92. Thus, each of the second exchange took place almost gear on the world in the second quarter in China.

due to the mitigation measures throughout the worlds, the IPO activities in April and may, as expected, went back, says Martin Steinbach, a Partner of EY. However, we have seen in June, clear signs of Recovery. Thus, the number of the stock exchange amounted to debut to the world in April, according to EY 54, and in may, 43 in June, however, 89 of the companies dared to step on the floor. Eight of the ten largest IPOs in the second quarter took place, therefore, also in June. The good development of the last weeks show, as the recording is capable of the market, says Steinbach. Well-prepared companies in the right industries and with the right business models should meet the interest of investors. Especially technology companies, as well as pharmaceutical and biotech values were investors in high demand. The recovery of equity prices, a much lower range of price fluctuation (volatility), and improved mood have contributed to the improvement of the environment. Stock market candidates took advantage of, especially in the virtual Investors, and prepare themselves with shorter Roadshows on volatile markets.

in Germany, Too, came in June, therefore, more momentum in the market. The pharmaceutical companies pharmaceutical SGP redeemed with his debut in the Prime Standard of the German stock exchange, to around 127 million euros. At the end of may, the database Management had taken firm Exasol million euros.