During the second quarter of 2015, global IPO activity maintained the steady pace set during the first three months of the year. By the end of the first half of 2015 (1H15), deal numbers had reached 631 IPOs, a 6% increase on the same period last year.
Improving economic backdrop will underpin deal activity
The economic outlook is positive. The International Monetary Fund (IMF) expects the world economy to expand by 3.5% in 2015, although growth prospects across regions remain uneven.
The economic pendulum has swung back in favor of developed economies, with the US resuming growth. Prospects are positive in many EMEIA markets although the possible Greek exit from the euro, and possibly the EU, weighs on Eurozone confidence at the time of writing.
Among the BRIC nations growth rates in Brazil and Russia continue to be low, but while growth in China has also slowed, it has not had an adverse impact on market activity. While the Indian economy remains strong, this has yet to feed IPO activity.
In the first half of 2015, US IPO activity has not matched 2014, which was the busiest year since 2000. The rush to take advantage of favorable market conditions and complete transactions year’s end depleted the IPO pipeline.
However, this is refilling from a spectrum of sectors, suggesting activity is set to rise.