IPO Activity and Trends

2016 proved to be a very slow year regarding IPO activity. Overall, activity was down by 16% compared to 2015.

Jump to the main content area

Globally, Initial Public Offering (IPO) levels were significantly lower in 2016. With so many uncertainties such as the Brexit vote and US Presidential Elections, both which had significant impacts on global markets, companies were much more cautious than in more recent years where IPO activity had started to regain traction after the Global Financial Crisis.

With Q1 holding no IPOs in both January and February, the year started off as the slowest year for IPO’s since 2009. The unstable market meant that companies were reluctant. Q1 ended with a total of 15 IPO’s.

IPO activity in Q2 was still significantly lower than 2015. UK movement was described as sluggish with a total of 18 IPO’s, however, global activity picked up, rising around 29%. This signalled a more positive outlook for the remainder of the year.

Q3 was a steady quarter for IPO’s. At this point, the decision for Britain to leave the European Union had been made but the uncertainty regarding the US Presidency still remained, however IPO activity was up on Q3 of 2015 and volatility was reduced.

Trends for 2017

After a tough year, the outlook for IPO activity in 2017 is positive and hopeful. Q4 ended positively in 2016, providing a more stable outlook. It is said that markets will still remain under pressure in 2017, but there is a strong investor appetite. According to TechCrunch, 2017 will see a large amount of technology IPO’s.

To keep up-to-date with our market insights, follow us on Twitter!