Quick review of the IPO Market in 2020
2 minutes for reading
Last year was quite a trial for all of us, as well as for global economy. Imagine how surprised I was to find out that stock indices in 2020 managed to grow, and the global IPO market remained active and assorted. If you're looking forward for details — keep reading.
How many companies carried out IPOs in 2020?
To answer this damn good question, we'll use the info collected by Refintiv, a major player in the market of financial data. The company claims that last year, 1,755 entities started trading in the exchange, which is almost 31% more than in 2019.
Moreover, not only the number of issuers grew but also attracted sums increased: 324.14 billion against 203.66 billion USD. The difference is slightly over 59% — impressive, isnt' it?
Which countries were the leaders of IPOs?
- USA - 392 (22.34%)
- Japan - 95 (5.41%)
- Canada - 91 (5.18%)
- South Korea - 87 (4.96%)
- Australia - 70 (3.99%)
- Taiwan - 51 (2.9%)
- Indonesia - 49 (2.79%)
- India - 46 (2.62%)
- Great Britain - 38 (2.16%)
- Other countries - 318 (18.12%).
Companies from which countries attracted the most money?
Back we go to Refinitiv. The most profitable IPOs happened in the USA: 143.58 billion USD totally or 44.29% of the overall sum. Number two is China: 100.26 billion USD or 30.93%.
Number three is Brazil, with 2.68% or 8.68 billion USD. Other countries taken together only managed to attract 71.62 billion USD, which was slightly over 22.09%.
Which IPOs were the largest in 2020?
- Beijin-Shanghai high-speed railway - 4.4 billion USD
- Pershing Square Tontine Holdings - 4 billion USD
- JD Health International - 3.999 billion USD
- Snowflake - 3.864 billion USD
- Airbnb - 3.83 billion USD
IPOs from which sectors were the most successful?
Let's find out how was the money distributed among different parts of economy. Line one of our list is occupied by investment trusts that got 90.6 billion USD, which was almost 28% of the general sum of IPO revenues.
Number two is IT — becoming public, tech companies attracted 39.4 billion USD, i.e. 12.15%. Next, pharma companies: 30.8 billion USD or 9.5%.
Summing up
In 2020, 1,755 companies became public, which is 31% more than in 2019. The statistics of attracted finance were also more impressive: 59% more, 324.14 billion against 203.66 billion USD.
The USA and China were the leaders in terms of the number of companies having IPOs and the mony they gathered. As for trading platforms, the most popular ones were NASDAQ, NYSE, SSE (Shanghai), and SZSE (Shenzhen).
As for the sectors of economy, the most successful ones were the investment sector, biopharma, and IT.
