Global IPO activity experienced a modest recovery from the first quarter of 2016, with issuance totaling $22.5 billion in the 2Q16, more than double the 1Q16 total but a 56% drop year-over-year. Investors continued to be cautious as they weighed uncertainties over possible US interest rate hikes, the Brexit vote and China’s slowing economy. Despite European IPOs taking a quarter-end battering following Britain’s unexpected decision to leave the EU, overall IPO returns stayed positive at 7.9%, excluding high-flying China A-shares. Europe took the IPO crown from Asia Pacific, raising $10.6 billion, or 47% of total proceeds, as poor returns derailed the normally active Hong Kong market. Notably, IPO activity picked up in New York after a 1Q shutdown as a wider range of companies accepted lower valuations and braved the markets to raise $4.7 billion. As global markets now reel from the Brexit vote, we expect a pause in the tentative IPO market recovery. However, a number of large deals wait in the wings, and the solid performance of IPOs to date should encourage companies anxious for liquidity step forward.
View our 2Q16 Global IPO Review 
