Asia-Pacific leads global IPO volume with 546 deals in 2014

They raised a total of $106.8b.

Asia-Pacific led the global IPO deal volume in 2014, with a total of 546 IPOs launched in the region’s bourses. These deals raised a total of $106.8b (US$81.4b), representing 32% of the global IPO proceeds.

According to a report by EY, the region was home to six of the world’s top ten exchanges by deal volume, and four by capital raised. Five of the largest ten global deals in 2014 took place on Asia-Pacific exchanges, spread across Australia, Hong Kong and Tokyo.

The US led IPO activity in terms of capital raised in 2014, where a total of 288 IPO listings raised $124.9b (US$95.2b). This is the highest number of US deals since 2004 and the highest level of capital raised in the last 15 years.

The NASDAQ was the world’s busiest exchange by number of IPOs, accounting for 14% of the global total, while New York Stock Exchange led by capital raised (with 29% of global capital), even excluding the impact of the Alibaba deal.

“The outlook for the IPO market in Asia-Pacific is very positive after a record year for IPOs in Australia, a rejuvenated market in Japan and a steady flow of listings across China and Southeast Asia. Relative political and economic stability in Southeast Asia, with efforts being made by countries like Singapore, Thailand and Malaysia to attract more cross-border listings in 2015, will help to bolster the market. Improving macroeconomic conditions across major parts of the region are likely to support demand and boost investor sentiment further,” said Max Loh, Asean and Singapore Managing Partner at EY.

“With IPOs in the Asia-Pacific delivering average year-to-date returns of 49%, much higher than equity market indices, we expect IPO stocks will remain attractive as we move into 2015. It is predicted there will be around 94 IPO deals in Q1’15, raising close to US$10b,” he adds.

In 2014, 1,206 IPOs raised $336.5b (US$256.5b), a 35% increase in volume and a 50% increase in value compared to 2013,