Asia-Pacific, led by Greater China, once again dominated global IPO activity in Q1 2017, accounting for 70% of the global number of IPOs and 48% by global proceeds, according to the EY quarterly report, "Global IPO Trends: Q1 2017."
Greater China exchanges were the busiest, hosting 182 IPOs, with the Shenzhen and Shanghai exchanges being most active and accounting for 20% (73 IPOs) and 19% (70) of the global number of IPOs, respectively.
However, activity was spread across the region with a healthy set of listings on public markets in Japan (27), Australia (23), Southeast Asia (14) and South Korea (12).
In the short-term, Greater China, and by extension Asia-Pacific, is expected to continue its dominance of the global IPO market as the China Securities Regulatory Commission (CSRC) is anticipated to clear an extensive backlog of listings by increasing the pace of IPO approvals throughout this year.
"IPO activity in Asia-Pacific has been powering ahead due to the region's relative insulation from political uncertainty elsewhere in the world, ample liquidity in emerging markets and strengthening investor sentiment on the back of reduced volatility and steady stock market gains,” says Ringo Choi, EY Asia-Pacific IPO Leader.
“While IPO activity is likely to increase on Mainland China and selected ASEAN exchanges during the second and third quarters, there may be a slowdown in new listings in other markets. Hence, this region may see a temporary drop in activity, but is expected to rebound in the final quarter of the year."