New World Record in IPO and What is Required by Companies for a Successful IPO

Given the dynamics of Q12021 IPOs that continue unabated and Q22021, creating the highest number of IPOs and corresponding capital, we conclude that global growth is ongoing.

More specifically:

• Q12021, public registrations dominated through SPACs (Special Purpose Acquisition Companies) with 1070 public registrations and $222bn raised capital.

• Q22021, traditional public subscriptions dominated, due to high liquidity and strong returns of the stock markets worldwide.

A successful IPO

The global ranking of companies in IPO by sector

1. The technology sector dominated in terms of the number of public subscriptions (27%) in the first half of 2021, with 284 IPOs and $ 90.2bn.

2. The health sector (17%) in the first half of 2021, with 187 IPOs and $ 33.4bn.

3. The industry (12.7%) with 140 IPOs and $ 24.3bn capital.

USA

276 IPOs were achieved, raising $ 93.9 billion, recording an increase of 229% and 282% respectively in both number of IPOs and capital on an annual basis.

• Classification based on the number of IPOs

1st place – Healthcare Sector (36%) and 2nd position Technology sector (31%)

• Classification based on the size of the raised funds

1st place – Technology sector (49%) and 2nd position Healthcare sector (23%)

Asia-Pacific

For the first half of 2021, 471 IPOs were achieved and $ 74.3 billion in capital was raised. The technology sector took first place with 99 IPO’s and $ 25.1 billion in capital.

ΕΜΕΑ (Europe, Middle-East and African Countries)

Respectively, for the first half of 2021, 227 IPOs were registered and $ 46.6 billion was raised.

Conditions for the second half of 2021 are favorable, which is why many companies are preparing to go public. Mainly technology companies, Special Purpose Acquisition Companies (SPACs) and companies that generally proved to be very resilient to the Covid-19 pandemic (economic shutdowns, social lockdowns).

It should be noted that if the traditional sectors of the economy such as retail, travel, tourism, and hospitality & catering, respectively, fail to recover, global markets will not be able to achieve full global economic growth.

What is required of companies for a successful IPO

• Realistic perception of valuations.

• Application of ESG criteria

• Strategy and corporate culture that will incorporate the ESG criteria in practice.

• Very good preparation.

• Convince investors that they have the necessary resilience to the effects of the pandemic.

• Vision and strategy to create long-term multiplier value for all stakeholders.

The investors must have in mind that before investing their capitals through IPOs to read our analysis titled “Why to Choose and Avoid as Investor equally to Purchase Shares through IPO’s”. 

About the author

The Liberal Globe is an independent online magazine that provides carefully selected varieties of stories. Our authoritative insight opinions, analyses, researches are reflected in the sections which are both thematic and geographical. We do not attach ourselves to any political party. Our political agenda is liberal in the classical sense. We continue to advocate bold policies in favour of individual freedoms, even if that means we must oppose the will and the majority view, even if these positions that we express may be unpleasant and unbearable for the majority.

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