The global IPO market continued its fast start of 2014 in the third quarter. Thanks to Alibaba Group’s historic $21.7 billion IPO, quarterly proceeds were up nearly 200% year-over-year. Excluding Alibaba, quarterly IPO proceeds were led by the North American and Asian regions, which accounted for 40% and 30% of quarterly proceeds, respectively. European issuance slowed from the rapid 2Q14 pace as the region faced challenges to its economic recovery. Due to the disappearance of A-share IPOs and poor aftermarket performance, the Asia Pacific region’s market share continued to contract in the 3Q14 to just 19%. Despite turbulent equity markets, IPOs generated a 19.3% average return thanks to the strong performance of North American IPOs. With IPOs outperforming the broader market and economic conditions improving in developed markets, we expect to see strong issuance continue for the remainder of 2014.
View the entire 3Q14 Global IPO review here.
