Last Year, Emerging Markets IPOs Reach Record High of 271 Trillion Won

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Last year, the scale of initial public offerings (IPOs) in emerging markets reached an all-time high.

On the 2nd (local time), Bloomberg News reported based on its own data that 1,161 companies in emerging markets raised $228 billion (approximately 271.2744 trillion KRW) through IPOs last year. This represents about a 30% increase compared to 2020, marking the largest scale ever recorded.

By country, Chinese companies led with 602 IPOs, followed by South Korea, India, Indonesia, and Brazil.

The stock prices of emerging market IPO companies rose by an average of 30% after listing last year, with Asian and Middle Eastern & African IPO companies' stock prices increasing by 37% and 27%, respectively. In contrast, IPO companies in Latin America and Europe saw their stock prices fall by 14% and 13%, respectively.

Bloomberg analyzed that "the speed of economic recovery by region and differences in industries among companies determined the stock performance of IPO companies last year."

Europe was significantly affected by the poor performance of newly listed telecommunications stocks, while Latin America’s IPO companies suffered due to political instability and the impact of COVID-19.

Bloomberg explained, "Despite the record scale of IPOs, emerging market stock markets were the weakest since 2018 last year," adding, "This indicates a decline in preference for emerging market risk assets due to the spread of COVID-19 variants and relatively high interest rates."

In this regard, Goldman Sachs, Morgan Stanley, and JP Morgan Chase predicted that emerging market stock markets would continue to perform poorly at least until the second half of the year. BlackRock expressed a 'neutral' stance on emerging market stocks while favoring developed market stocks.

This content was produced with the assistance of AI translation services.