CEO, Marketsmith India (part of William O'neil India).
The IPO market has been on a tear so far in 2017. The Indian exchanges saw 57 new companies getting listed on their platforms in the first half of 2017 raising USD 2.3 billion. This represents a growth of 50% in terms of the number of listings and 91% in terms of the amount raised, compared to the corresponding period of 2016. Most of the IPOS had the Offer for Sale (OFS) portion exceeding the proceeds from fresh equity sale. This clearly indicates that the growth in IPOS this year has been mostly due to promoters/private investors’ propensity to cash in on the surging equity market. Majority of the IPOS came from the financial services sector. Global IPO Market Performance : This year has seen a strong start for the primary market globally with equity markets inching higher on low volatility. In H1 2017, the primary market witnessed 772 IPOS globally raking in USD 83.4 billion. This is an increase of 90% by proceeds and 70% by number of deals, compared with the first half of 2016. H1 2017 was the most active first half of a year by global number of IPOS since H1 2007 (which saw 941 IPOS raising USD 146 billion). Region-wise, Asia-pacific accounted for 61% of global IPOS and 44% of the total proceeds in H1 2017. China’s Shenzhen and Shanghai exchanges led in terms of the number of IPOS, accounting for 17% and 16% of all IPOS worldwide, respectively. The increase in China’s listings was partly a result of the effort by the market regulator, to speed up the IPO approval process.