Last year was a fantastic year for IPO investors who benefited from both the number of IPOs and their outsized average returns, despite the COVID-19. The strong IPO activity continued in 2021, with initial public offerings setting a new record. However, some regions witnessed a much bigger growth than the others.
According to data presented by BuyShares, the European IPO activity soared by 850% YoY, with the total value of deals reaching $55bn in June.
Credit Suisse No. 1 Adviser on IPOs in Europe
In 2020, the combined value of all IPO deals jumped by 64% YoY to almost $320bn, revealed the Wall Street Journal and Dealogic data. US companies raised $144.4bn through IPOs last year, a 157% increase YoY and the highest value since 2000. Asia witnessed $121.3bn worth of IPO deals, 80% more than in 2019. Last year, European companies raised $28.6bn in initial public offerings, a much modest 28% increase in a year.
Although the global IPO activity surged in the first half of 2021, statistics show that Europe witnessed much bigger growth than other main regions. US companies raised $147.6 billion in IPO deals this year, 453% more than the same period in 2020. The total value of IPO deals in the Asian market jumped by 146% YoY to $75.6bn in June. The Middle East and Africa, and Latin America also witnessed impressive growth, with the total value of their IPO deals increasing by 375% and 290% YoY, respectively.
Statistics show Credit Suisse ranked as the number one advisor on IPOs in Europe, with $15.7bn worth of deals in the six months of 2021, continuing its impressive performance after a fantastic 2020. The Swiss financial giant ended the last year as the top investment bank globally, with $21.4bn worth of IPO deals, more than Citi, JPMorgan or Morgan Stanley.
Barclays ranked as the second-largest investment bank in Europe, with $11.7bn worth of IPO deals between January and June. UBS and Deutsche Bank follow, with $9.4bn and $8.7bn, respectively.
Global IPO Activity Surged by 336% YoY, Finance Companies Lead in Total Value of Deals
The first half of 2021 has witnessed $300.9bn worth of IPO deals on the global level, 336% more than in the same period a year ago. Most of that value, or $203.5bn worth of deals, were made in Q1 2021 as the record quarter for IPO activity.
Analyzed by sectors, finance companies raised almost $116.6bn, or nearly 40% of the total value of IPO deals in 2021. The technology sector ranked second with 79bn worth of deals. Healthcare, transportation, and consumer products followed, with $29.2bn, $10.9bn, and $9.4bn, respectively.
Federal Government of Nigeria: Listing of the two (2) FGN Savings Bonds Issued in July 2021
Two Dividends Declare Last Week
Cutix Plc and Custodian Investment are two listed companies that declared Dividends last week as listed below.
Proposed Dividend: ₦0.15
Proposed Bonus: 1 FOR 1
Qualification Date: 11/12/2021
AGM Date: 11/26/2021
Payment Date: 11/29/2021.
Closure of Register Date: 11/15/2021
CUSTODIAN INVESTMENT PLC.
Proposed Dividend: ₦0.10
Proposed Bonus: null FOR null
Qualification Date: 8/20/2021
Payment Date: 9/1/2021
Closure of Register Date: 8/23/2021
Equities Investors Lose N63 Billion Last Week
The Nigerian Exchange Limited (NGX) returned to bearish last week despite strong second-quarter reports from listed companies.
Investors traded total shares of 1.374 billion worth N11.823 billion in 22,982 transactions last week, against a total of 896.174 million shares valued at N5.235 billion that exchanged hands in 11,714 deals in the previous week.
In terms of volume traded, the financial services industry led the activity chart with 715.394 million shares valued at N4.745 billion traded in 10,274 deals. Therefore, contributing 52.06 percent and
40.13 percent to the total equity turnover volume and value, respectively.
The Conglomerates Industry followed with 212.340 million shares worth N517.613 million in 1,060 deals. The third place was Oil and Gas Industry, with a turnover of 153.440 million shares worth N1.597 billion in 3,076 deals.
Transnational Corporation Of Nigeria Plc, Oando Plc and Fidelity Bank Plc were the three most traded equities during the week. The three accounted for 378.863 million shares worth N995.477 million in 2,998 deals, therefore, they contributed a combined 27.57 percent and 8.42 percent to the total equity turnover volume and value, respectively
The NGX All-Share Index declined by 0.31 percent or 120.82 index points from 38,667.90 index points posted in the previous week to 38,547.08 index points last week.
Similarly, market capitalization depreciated by 0.31 percent or N63 billion to close at N20.084 trillion last week, down from N20.147 trillion.
All other indices finished lower with the exception of NGX Premium, NGX Consumer Goods, NGX Oil/Gas and NGX Sovereign Bond indices which appreciated by 0.02 percent, 0.06 percent, 3.84 percent and 1.97 percent respectively, while the NGX ASeM and NGX Growth Indices closed flat.
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