Latest News

Global IPO divergence widens as Americas and EMEIA surge and Asia-Pacific slows

Published

5 days ago

June 27, 2024

H1 2024 global IPO volumes fell 12%, with proceeds down by 16% year-on-year
EMEIA regained the No.1 global IPO market share by number for the first time in 16 years
Industrials led the way in volume of IPOs with technology raising the most capital

LONDON, June 27, 2024 /PRNewswire/ — Globally, in the first half (H1) of 2024 there were 551 listings raising US$52.2b in capital, a 12% decrease in the number of IPOs and a 16% drop in proceeds raised year-on-year (YOY). This result is mainly due to a slowdown in Asia-Pacific IPO activity, with the Americas and EMEIA seeing robust growth in H1. These and other findings are available in the EY Global IPO Trends Q2 2024 report.

Industrials took the lead in number of IPOs with 115 (21%) listings, primarily fueled by strong activity in India. Meanwhile, the technology sector outperformed in terms of capital raised, amassing an impressive US$10.8b (21%) in IPO proceeds, with the US securing more than half (52%) of these funds.

There was a leap in large private equity (PE)- and venture capital (VC)-backed IPOs, with the proportion of IPO proceeds from such offerings rising from just 9% in the first half of 2023 to 41% in H1 2024. This trend was particularly pronounced in the Americas, where 74% of the IPO proceeds were from PE- and VC-backed companies.

Americas and EMEIA gain ground while Asia-Pacific activity continues to slow

During H1 2024, there was a strong appetite for equity offerings in both the Americas and EMEIA regions, buoyed by favorable stock market performance, improving IPO valuation levels and growing investor enthusiasm for new offerings. In the Americas, there were 86 IPOs with proceeds of US$17.8b, an increase of 12% and 67% respectively YOY.

The EMEIA region made a remarkable comeback in H1 2024, achieving its highest global share by number since the 2008 global financial crisis while accounting for 45% of total deal volume and 46% of value. This impressive performance was spurred by major European listings, indicating that more larger companies perceive the current market condition as an optimal IPO window. India also experienced a significant surge, accounting for 27% (152) of global IPOs by deal volume, up from 13% (81) in the same period last year.

The Asia-Pacific region, once a hotbed for IPOs, has seen its market sentiment dampened by a confluence of headwinds, including geopolitical tensions, elections, economic slowdown, heightened interest rates and a drought in market liquidity, which led to investor caution. The region witnessed a prolonged slowdown in H1 2024, with a mere 216 IPOs listed and US$10.4b raised. This lacklustre performance represents a staggering decline of 43% and 73% by volume and value YOY, respectively. It is important to appreciate, however, that policymakers in China have set higher requirements on IPOs to improve the strength and the scale of companies choosing to go public.

George Chan, EY Global IPO Leader, says:
“The global IPO market reflects the broader economic backdrop, while seeking new balance amid geopolitical and election complexities. As the pendulum of opportunity swings toward the developed Western economies, the Asia-Pacific region faces headwinds that test its tenacity. Companies contemplating IPOs need to show heightened adaptability to make well-informed strategic decisions amid the evolving IPO landscape.”

H2 2024 IPO market outlook

According to the report, the second half of 2024 will be shaped by key factors affecting the global IPO market – the central banks’ interest rate cut schedules, escalating geopolitical tensions and the election super-cycle.

The report predicts that global inflation will continue to cool amid varying economic conditions and regional inflation levels. The central bank’s easing cycle is likely to be disjointed with some European and emerging markets leading the way, ahead of a more hawkish US Federal Reserve (Fed). When central banks, including the Fed, reverse their course and start to lower interest rates, investors are expected to move their capital in search of higher returns. This shift is anticipated to increase liquidity in equity markets, emerging markets and growth-oriented sectors like technology and health and life sciences.

Chan says: “Geopolitical tensions could compel businesses to explore alternative IPO markets, avoiding high-risk regions and seeking more favorable regulatory environments. This shift could potentially lead to the rise of new financial hubs and alter the IPO market landscape. Meanwhile, election-related uncertainties impact IPO timing. Some companies could postpone offerings to sidestep the unpredictable effects of electoral outcomes on market stability and investor confidence, preferring to await more stable post-election conditions.”

About EY
EY exists to build a better working world, helping create long-term value for clients, people and society and build trust in the capital markets.

Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate.

Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.

This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.

About EY Private
As Advisors to the ambitious™, EY Private professionals possess the experience and passion to support private businesses and their owners in unlocking the full potential of their ambitions. EY Private teams offer distinct insights born from the long EY history of working with business owners and entrepreneurs. These teams support the full spectrum of private enterprises including private capital managers and investors and the portfolio businesses they fund, business owners, family businesses, family offices and entrepreneurs. Visit ey.com/private.

About EY IPO services
Going public is a transformative milestone in an organization’s journey. As the industry-leading advisor in initial public offering (IPO) services, EY teams advise ambitious organizations around the world and helps equip them for IPO success. EY teams serve as trusted business advisors guiding companies from start to completion, strategically positioning businesses to help achieve their goals over short windows of opportunity and preparing companies for their next chapter in the public eye: ey.com/ipo

About the data
The data presented here is available on ey.com/ipo/trends. H1 2024 refers to the first six months of 2024 and covers completed IPOs from 1 January 2024 to 17 June 2024, plus expected IPOs by 30 June 2024 (forecasted as of 17 June 2024). H1 2023 refers to the first six months of 2023 and covers completed IPOs from 1 January 2023 to 30 June 2023. All data contained in this document is sourced from Dealogic, S&P Capital IQ, Mergermarket and EY analysis unless otherwise noted. The Dealogic data in this report are under license by ION. ION retains and reserves all rights in such data. SPAC data are excluded from all data in this report, except where indicated.

CONTACT:
Olivia Braddick
EY Global Media Relations
+44207 951 6829
[email protected]

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Latest News

SEBI cracks down on Finfluencers with new compliance rules

Published

30 mins ago

July 2, 2024

Peter Tolan

SEBI has introduced a comprehensive set of regulations targeting the growing impact of finfluencers on India’s investment landscape.

According to MSN, these new rules are a direct response to concerns regarding potential biases and misleading advice from finfluencers, often operating on commission-based models.

Significantly, SEBI has implemented a fixed price mechanism for the delisting of frequently traded shares, alongside a streamlined framework specifically tailored for Investment and Holding Companies (IHCs). Additionally, the regulations introduce notable changes for exchanges and other market infrastructure institutions (MIIs), including the removal of financial penalties for managing directors and chief technology officers following technical failures.

The surge of finfluencers has been remarkable, leveraging their extensive reach among India’s vast retail investor base, particularly through platforms like YouTube, TikTok, and Instagram. Many originate from smaller cities and communicate in Hindi or regional languages, addressing the country’s low financial literacy rate of just 27%. Their influence surged during the Covid-19 pandemic, filling a gap in traditional financial education.

Often surpassing established brokerage firms in popularity, top finfluencers can earn between Rs 15 lakh to Rs 30 lakh per month. However, the sector’s accessibility has also heightened exposure to dubious actors and potentially harmful financial advice.

Under the new SEBI regulations, brokers and mutual funds are prohibited from engaging unregistered financial influencers for promotional activities. However, those involved in investor education remain exempt under strict adherence to SEBI’s conduct guidelines, which include restrictions on guaranteeing returns.

Alongside influencer-related measures, SEBI Chair Madhabi Puri Buch outlined revised criteria linking stocks to derivative products such as futures and options, expanding the number of eligible stocks for derivative trading slightly. Moreover, updated delisting rules enable companies to offer fixed share prices during delisting processes, mandating a minimum 15% premium above the floor price, thereby simplifying exit procedures from stock exchanges.

Source: fintech.global

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Latest News

ViewTrade launches in Australia to deliver enhanced global market access, nearly USD $160M in possible savings

Published

2 hours ago

July 1, 2024

CISION (PR Newswire)

JERSEY CITY, N.J. and SYDNEY, July 1, 2024 /PRNewswire/ — Global investment and trading technology solutions provider ViewTrade Holding Corporation has launched in Australia in a bid to deliver enhanced global market access, reduce inefficiencies caused by legacy infrastructure, and create investment avenues for the $9 trillion of superannuation assets expected to amass by 2041.

ViewTrade has also calculated that its technology and operational solutions, particularly for crossborder investing, could bring efficiencies not currently available to the Australian wealth industry, creating savings of nearly USD $160 million annually given the scale of wealth under management.

Unlocking more efficient and broader access to global markets would also enable Australian investors to capitalise on new opportunities for diversification and returns.

ViewTrade therefore hopes to create significant value for Australia and its financial services ecosystem, which it sees as having quite an exceptional talent pool thanks to the significant complexity of the regulatory landscape.

Tony Petrilli, CEO of ViewTrade Holding Corporation, said: “Launching in Australia underscores ViewTrade’s dedication to empowering financial institutions and wealth management firms across the globe. But it is particularly exciting for us to launch into such a promising market as Australia, where we have incredible wealth management expertise and high potential for growth. We can’t wait to work with partners on the ground, given the sophistication and talent in the local market.“

As of year-end 2023, ViewTrade carried over USD $20 billion in assets under administration globally. In cross-border transactions, it also brokered 58.2 billion equity shares, USD $860.9 billion in equity orders, and 16.7 million option contracts between 2020 and 2023.

This makes ViewTrade one of the largest B2B-only, cross-border investment solution providers globally.

Its new Sydney-based regional HQ makes Australia the 30th country where ViewTrade provides its suite of solutions including cross-border and multi-asset investments, custody, and funding for broker-dealers, super funds, wealth advisors, and fintechs.

The new entity is now operating under the name ViewTrade International Australia (VTIA), and will be used to expand an already-significant APAC presence, with plans to also expand its existing presence in the Middle East.

VTIA is helmed by CEO Nigel Singh, whose 20 years’ experience within wealth management, capital markets, and investment technology includes establishing Morgan Stanley’s flagship Private Wealth Management (PWM) operation in Australia.

Singh is joined by Chief Operating Officer Carl Brazendale, a financial services veteran with 13 years’ experience at BNY Mellon’s Pershing division, and leadership roles at global fintech providers such as GBST and Broadridge. Former Morgan Stanley director and FinClear exec, Kerri Buggy VTIA’s the Operations Manager.

According to Singh, the immense opportunity lies in the ability of ViewTrade’s local team to work closely with Australian firms to create significant efficiencies through world-class technology and unparalleled global access, significantly reducing Time-to-Value (TTV) creation for clients looking to achieve their strategic and tactical goals.

Nigel Singh, CEO of ViewTrade International Australia, said: “The Australian market is ripe with potential, huge financial services and wealth sector, exceptional talent pool, and strong yet balanced regulatory landscape.

“I am excited to work closely with local Australian firms to deliver the same market-leading levels of innovation and efficiency that ViewTrade has delivered in other markets globally.

“Our local Australian expertise and strong belief in the value and potential of the Australian financial services industry as a whole will position us strongly to succeed from day one. We couldn’t be more excited to build bespoke solutions tailored to the strengths and needs of this critical market to help realise its enormous potential.“

Please contact Laura for any interview requests: ‪[email protected]

For media inquiries in the US, please contact: [email protected]

ViewTrade (www.viewtrade.com) is a global leader in investment and trading infrastructure solutions that power cross-border investing for financial services firms throughout the world. ViewTrade provides the technology, support, and brokerage services that business innovators need to launch or enhance retail investing experiences. For more than 20 years, ViewTrade has partnered with over 300 clients – from technology startups to large banks, brokers and advisors – to deliver innovative investment solutions and exceptional customer service.

This communication is not an offer to buy or sell securities and is not a recommendation regarding any investment or investment strategy by ViewTrade International Australia Pty Ltd (ACN 676 490 056). Any financial advice or information provided is general in nature and provided for illustrative purpose only and does not take into account any person’s personal objectives, financial situation or needs. Investing involves risks and past performance is no guarantee of future results. We recommend that before any person acts on any advice provided, they seek advice from a licensed and/or authorised financial adviser to determine whether the advice provided is appropriate to them taking into account the individual’s personal circumstances. ViewTrade International Australia Pty Ltd does not accept liability for errors or omissions in the contents of this communication.

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Latest News

Advertising in Digital Publications Becomes Integral to Modern B2B Marketing Strategies

Published

3 hours ago

July 1, 2024

Peter Tolan

Advertising in digital publications has become indispensable in contemporary marketing strategies, bridging brands with consumers in an increasingly digital world.

A recent publication from StudioID underscores the strategic importance of digital publications in modern marketing, highlighting their role in stimulating demand, generating high-quality leads, and bolstering brand recognition and reputation within business-to-business (B2B) content distribution strategies.

Titled “B2B Content Distribution: Why Advertising in Digital Publications Is Essential,” the post explores the rapid ascension of digital publications in the global media landscape, delves into various advertising formats being employed, and outlines the manifold advantages of advertising in these platforms.

The Rise of Digital Publications

Digital publications are swiftly gaining ground. Statista forecasts the global market for digital newspapers and magazines to reach $40.23 billion in revenue by 2024, with an anticipated annual growth rate of 2.06% through 2029, culminating in $44.54 billion. By 2029, global penetration is expected to rise from 17.7% in 2024 to 20.4%.

Driving this shift from print to digital are factors such as widespread internet accessibility, technological advancements, and evolving reader preferences favoring online content consumption. Recent research across 48 markets by YouGov underscores this transition, revealing that 47% of consumers globally rely on social networks for news, while 38% prefer news apps, and 35% visit newspaper websites.

Mechanics of Advertising in Digital Publications

The surge in digital publications has paralleled an uptick in advertising within these platforms. This involves collaborative efforts between brands and publishers to craft campaigns tailored to the publication’s audience. These ads often serve informational purposes, establishing the brand’s authority and building trust over time.

For instance, fintech companies like Revolut, PayPal, and Robinhood may leverage sponsored content in publications like Business Insider, TechCrunch, or Forbes to reach tech-savvy audiences and financial decision-makers.

This approach blends the benefits of paid channel advertising with the informative nature of organic content marketing, driving demand generation for new leads while bolstering brand recognition and reputation.

Aside from sponsored content, digital publications offer a variety of ad formats, including display ads (like banners and pop-ups), video ads (short clips before, during, or after video content), interstitial ads (full-screen ads on apps or websites), and rich media ads (interactive ads with video, audio, or other engaging elements).

Benefits of Advertising in Digital Publications

Advertising in digital publications offers numerous advantages. Firstly, it provides brands exposure to potential customers beyond traditional advertising networks, with tailored approaches resonating well with niche audiences.

Secondly, digital publications capture audiences in a receptive mindset. Visitors actively seek information, positioning ads to engage them during pivotal decision-making moments, thereby enhancing lead quality and conversion rates.

Moreover, advertising in digital publications facilitates broad campaign reach across multiple stakeholders within organizations, fostering opportunities for multi-threaded engagement.

Lastly, digital publications are trusted sources of reliable information. Associating brands with such credible platforms establishes immediate trust with the audience, enhancing brand credibility and engagement. Collaborative initiatives, such as co-created webinars, further amplify these benefits.

Partnership Methods

Brands collaborate with digital publications through various strategies. Content amplification promotes events and campaigns via pay-per-click ads within specific publications, while newsletter placements leverage high open rates among subscribers for sponsored content integration.

Sponsored articles enable brands to publish informative content alongside regular editorial, enhancing brand visibility and trust. Co-branded content, like sponsored webinars, combines industry expertise with publication promotion, driving targeted audience engagement and conversion.

Lastly, in-article callouts strategically position advertisements within popular articles, seamlessly blending with the publication’s style to maximize engagement and reach.

In essence, advertising in digital publications not only amplifies brand visibility but also establishes credibility and fosters meaningful consumer engagement in today’s digital marketing landscape.

Source: fintechnews.ch

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