Commentary from Delloittes on IPOs in 2016
Following a year of record listings, initial public offerings (IPOs) on the ASX have settled into more modest territory in the first half of 2015, with a growing appetite for stocks that offer a balance between income and capital returns as market volatility rears its head once again.
At the close of the first half of calendar year 2015:
- 30 IPOs have raised $2.5bn
- This was more by number than the 22 listings in same period of 2014
- Funds raised were significantly less than the $4.6bn raised in the first half of 2014.
As 2016 approaches, global economic factors are likely to weigh heavily on investor sentiment whilst also posing challenges to company management. Despite volatility and pricing expectation gaps, there continues to be a very healthy pipeline of c.40 IPOs for the remainder of the year and into early 2016.