London Daily

Focus on the big picture.
Tuesday, Apr 29, 2025

Global IPOs marred by banks and recession enjoy few bright spots

Global IPOs marred by banks and recession enjoy few bright spots

A banking crisis and worries of a recession have dampened the outlook for initial public offerings (IPOs) this year, prompting companies to slow down their plans to go public in what is likely to result in lower fees for investment banks.

Despite a rebound in fundraising and block trading activity, year-to-date IPO volumes came in at their lowest level since 2019. Stock market flotations worldwide have raised close to $26 billion so far, according to data from Dealogic.

The lacklustre performance of some early IPOs, including that of German web hosting provider IONOS (IOSn.DE), combined with the stock market sell-off triggered by the collapse of Silicon Valley Bank, has forced several companies to delay the roll-out of their flotation plans.

Equity capital markets (ECM) advisers, however, are optimistic of a recovery in listing activity in the latter part of the year.

In the United States, IPO volumes jumped more than 50% from the fourth quarter of 2022, but were still 11% down from the same period last year.

IPOs briefly flickered back to life in February, as companies including solar tech firm Nextracker (NXT.O) and Chinese sensor maker Hesai Group (HSAI.O) pushed ahead with their listings.

"Realistically speaking, we're looking at the back half of the year as a starting point (for an IPO market reopening)," said Keith Canton, head of ECM for the Americas at JPMorgan Chase & Co (JPM.N).

A bright spot for IPOs was the energy transition industry, where the pipeline is expected to remain robust, according to IPO bankers.

"We (also) expect some high quality and long-standing consumer assets to emerge once market volatility dissipates," said Daniel Burton-Morgan, head of the Americas syndicate for ECM at Bank of America (BAC.N).

Further cross-border deals, including the long-anticipated IPO of SoftBank Group Corp's (9984.T) British chipmaker Arm, may also help boost U.S. volumes in 2023.


RECOVERY DELAYED


In Europe, investment bankers said the market volatility spurred by the banking crisis is likely to affect the pipeline of deals.

"What's happened with banks has led to a big pick-up in volatility in equity markets. Enthusiasm has fallen back again, but there will still be IPOs before summer – it very much depends on the individual company," said Andreas Bernstorff, head of ECM in EMEA for BNP Paribas (BNPP.PA).


For instance, German lender OLB, backed by Apollo Global Management (APO.N), and Swiss skincare specialist Galderma, have put their IPO plans on hold due to the current market conditions, according to people familiar with the matter.

Some, however, are hopeful of a pickup in market sentiment before the next wave of deals are launched.

Gambling firm Lottomatica, which is also backed by Apollo and furniture group Italian Design Brands, are among a handful of companies that are still pushing ahead with their plans to go public in the second quarter, sources said.

Lottomatica is looking to sell upwards of 400 million euros ($435.08 million) of new shares to bring down debt, plus an undetermined amount of existing stock, sources added.

"Had these events (the banking crisis) happened this time next month, when the IPO window opens, that would've been a lot more damaging," said Lawrence Jamieson, head of EMEA ECM at Barclays (BARC.L).


The Middle East was another bright spot for listings as several well-known names including Oman oil driller Abraj Energy (ABRJ.OM) and Adnoc Gas (ADNOCGAS.AD) in the United Arab Emirates (UAE) launched their flotations.

"The Gulf region has so far been immune to the nervousness that has rattled European markets, so we expect to continue to see IPOs coming out of countries like Saudi Arabia and the UAE," said Chris Laing, who oversees HSBC's (HSBA.L) ECM activities across Central and Eastern Europe, Africa and the Middle East.

While shares sales in Asia-Pacific witnessed a 19% drop in volumes, the region still made up for about half of global equity capital markets activity, including a roughly $9 billion stake sale in Japan Post Bank (7182.T).

Spokespeople for Apollo and Lottomatica declined to comment. OLB did not respond to a request for comment.

($1 = 0.9194 euros)

Newsletter

Related Articles

0:00
0:00
Close
Liverpool Clinches Record-Equalling 20th English League Title Under Arne Slot
Singapore Politicians Warn Against Foreign Interference in Election
Driver Ploughs into Vancouver Festival Crowd, Killing Nine
Depression, Fear of Defamation, and a Tragic End: New Details on Virginia Giuffre’s Suicide
“Sharia for UK, Allah Akbar!”
Massive Explosion at Iran's Bandar Abbas Port Linked to Suspicious Chemical Shipments
Incident Reflection: A Harsh Reality Check
Pakistani migrants to Danish man: “ “We have 5 children while you have 1 or 2. In 10 years, there will be more Pakistanis than Danes here.“
Clashes Erupt in London as Tensions Rise Between Indian and Pakistani Communities
Specialized anti-drone weapons deployed among security personnel Ahead of Papal Funeral
How do you fix this culture?
Corrupted from Within: How Deep State Power and Unelected Judges Hijacked Democracy Against the Will of the People
President Trump and Ukrainian President Zelensky just held an impromptu discussion on the sidelines of Pope Francis' funeral in Rome.
World Leaders Gather in Rome for Pope Francis's Funeral
Pope Francis Laid to Rest in Rome as World Leaders Attend Funeral
Alberta's Push for Independence Raises Questions About Canada's National Unity
Virginia Giuffre, Prince Andrew and Jeffrey Epstein accuser, dies by suicide
"China has survived for five thousand years, most of it without the United States as a market, and it can easily continue to survive without the U.S. market for another five thousand years — no problem," said a China analyst.
Elites vs. America: How Democrats Lost the Plot and the People
Pam Bondi Details Wisconsin Judge’s Actions Before Arrest: 'Can't Make This Up'
Not Child’s Play: How Competitive Gaming Became a Global Economic Empire
California Surpasses Japan to Become the World’s Fourth-Largest Economy
Peter Navarro: The Man Behind Trump’s Tariff Madness
Milwaukee Judge Arrested on Allegations of Aiding Undocumented Immigrant’s Escape
Former U.S. Congressman George Santos sentenced to eighty-seven months for wide-ranging fraud
Trump administration moves to BAN essentially ALL artificial food dyes in the USA food supply at RFK Jr.'s direction
Woman slaps man at sports game and gets herself and husband beat up
Pope Francis: head of the Catholic church who pushed for social and economic justice
China do not pay these tariffs - you pay it. This is new 145% tax you pay to the US government.
Nightlife in the streets of Manchester
In God We Profit
Cultural Battles in the Vatican: The Candidates in the Battle for the Holy See and Pope Francis's Testament
Global Leaders Pay Tribute to Pope Francis Following His Death
Wild Chimpanzees Observed Bonding Over Alcoholic Fruit
US Federal Reserve Chair Issues Warning on Tariff Impact
UK Prison Officers Demand Electric Stun Guns Amid Safety Concerns
China, China, China!
Australian National Charged as Mercenary for Fighting in Ukraine
Israel Considers Limited Strikes on Iran's Nuclear Facilities Amid Diplomatic Efforts
Prince Andrew Joins Royal Family Attends Easter Sunday Service at Windsor Castle
Saudi Arabia Offers Max Verstappen Unprecedented Deal to Join Aston Martin
Global Pistachio Shortage Amid Rising Demand for 'Dubai Chocolate'
Trump is assembling a coalition of Western leaders aligned with the MAGA vision, strengthening a unified front for global change
IMF Predicts No Global Recession Amid Trade Tensions
Here’s a police officer with a brilliant gift for swift education
"Some complain that we put thousands in prison. In reality, we set millions free."
This is Vienna, Austria in 2025.
Boeing Jet Returns to US from China Amid Tariff War
Canadian Federal Election: Candidates' Positions on US-Canada Relations and Donald Trump
Resentencing Hearing for Menendez Brothers Who Killed Their Parents Delayed Amid Legal Disputes
×