A look at EY’s Global IPO Trends for Q4 2015 gives a glimpse into the IPO pipeline for 2016, and despite a more uncertain outlook for global markets and some cautionary tales, the U.S. IPO market is poised for growth in deals and overall proceeds.
IPO activity in 2015 was more subdued than the banner year that was 2014. EY tracked 173 U.S. IPOs during the year, down 41% from 2014, and capital raised was down 65% at $33 billion – a downward trend that was also seen globally. Considering 2014 was the most active year since 2000, this slowdown in activity does not come as a surprise to most, and the lower number of IPOs for 2015 was only 5% below the 10-year median annual IPO deal level of 183 IPOs.
This sudden free fall in deal activity can be attributed to increased market volatility due to concerns over Greece and the euro zone, slowed growth in China, and uncertainty present throughout the year regarding the timing of the Fed’s long-anticipated interest rate hike. Other factors included the greater gamut of financing options available to companies, such as private markets and M&A, which was made evident by the strong M&A market in 2015.
Our recent webinar with Bloomberg (video) discusses how to take advantage of this window and plan your 2016 IPO… or exit. WATCH HERE.