Global IPO deals and proceeds surge to highest since 2010

IPOs surged both in proceeds raised and number of offerings in the first 11 months of the year, led by increases in the US, as stock markets gained and investor optimism remained high through much of the year.

The number of IPOs worldwide priced at more than a $100 mn jumped 28.7 percent in the first 11 months of 2014 – reaching 345 – compared with the same period last year, according to data compiled by industry analysis firm Renaissance Capital. That is the highest number since the 479 IPOs in 2010.

At the same time, proceeds raised surged 58 percent to $190 bn, according to the research. IPO proceeds were boosted by the Alibaba deal, which raised $25 bn, exceeding the $22.1 bn raised in 2010 by Agricultural Bank of China to make it the largest ever. Total proceeds raised also reached the highest level since 2010, which saw $243 bn in offerings.

The US led the IPO market both in terms of total proceeds and number of deals, with its 127 IPOs raising $73.8 bn. Hong Kong came a distant second by both measures, with 42 IPOs that raised $18.9 bn, followed by the UK, with 40 IPOs and $18.6 bn in proceeds. Australia was fourth, with 19 IPOs that raised a combined total of $12.7 bn.

China, which led the IPO market in 2010, came 12th in terms of proceeds raised this year, with $3.4 bn, and fifth in terms of number of deals, with 16. The country ended a year-long freeze of IPOs in 2014 as it sought to simplify the IPO process at home and clear a backlog of companies that have applied for listings.

Financial IPOs have been the most popular so far this year, accounting for 22.3 percent of the offerings and 30 percent of the proceeds raised, according to Renaissance Capital data. Technology IPOs came next, with 15.9 percent of the deals and 20.7 percent of the proceeds raised.