Companies raised $31.38 billion through IPOs in June 2020 and this figure is among the highest capital amount raised through IPO in the last 6.5 years, according to the World Federation of Exchanges (WFE).
In June 2020 companies raised $31.38 billion through IPO, which is a nearly triple (294.1%) increase in May 2020. The June figure is among the highest capital amount raised through IPO in the last 6.5 years, even while in the first-half overall, initial public offerings fell both year on year and relative to the second half of 2019.
Companies that raised billions through IPOs in June 2020
While IPO listings were down in the Americas region, investment flows were up thanks to some notable IPOs. The largest IPO in the region this year was Royal Pharma (Nasdaq-US) which raised $2.2 billion in June 2020. Other large IPOs on Nasdaq were Warner Music Group ($1.9 billion) and ZoomInfo Technologies (0.9 billion USD).
The APAC and EMEA regions also had some notable IPOs: Hong Kong Exchanges and Clearing listed JD.com (the largest IPO this year at $4.5 billion) and NetEase Inc ($3.1 billion), while LSE Group saw China Pacific Insurance Group ($2 billion) and Italian filter maker GVS ( $0.6 billion) come to market.
Despite recording a decline in overall listings in H1 2020, the APAC region had the lion’s share of both global IPO listings (63.2%) and investment flows (52.4%). Shanghai Stock Exchange recorded the highest number of IPOs globally (74), followed by Hong Kong Exchanges and Clearing (59) and the Shenzhen Stock Exchange (45).
In Q2 2020, global market capitalization rebounded after the sharp drop in the first quarter, adding $7.25 trillion in just one month (April). However, the global market capitalization at the end of H1 2020 was down 5.1% when compared with H2 2019.
Compared to H2 2019, equity markets saw record-high levels of value traded (49.7%) and volumes (47.1%). More than $12 trillion were traded globally over the course of Jun 2020.
Overall, the number of new listings through IPOs and investment flows through IPOs fell sharply by 36.5% and respectively by 42.7% when compared to H2 2019.
Exchange-traded derivatives (ETDs)
Derivatives trading surged for almost all contract types, and in all regions. Futures contracts trading increased significantly more than options trading. Overall, in H1 2020, exchange-traded derivatives volumes were up 23.4% when compared with H2 2019, reaching a record of 21.72 billion contracts traded.
In H1 2020, ETDs saw significant increases in volumes, mainly in stock index futures (76.2%) and single stock futures (55.2%), the former being driven by APAC region (142.9%) and, in particular, by the National Stock Exchange of India.
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