Companies across the globe are putting their planned IPOs on ice as the spread of the coronavirus rocks equity markets and dampens investor appetite for new investments.
Companies across the globe are putting their planned initial public offerings on ice as the spread of the coronavirus rocks equity markets and dampens investor appetite for new investments.
Russ Mould, investment director at stockbroker AJ Bell, said a prolonged slide in shares would not be helpful for the IPO market for two reasons. Michael Hewson, chief market analyst at CMC Markets U.K., questioned why companies would want to float now with markets in flux. “It’s about risk appetite. You want to build a book when investors are willing to take on risk and they are risk-averse at the moment,” he said.
There has been just $119.2 billion-worth of deals in the year to date, a 49% fall compared with the same period last year, according to financial data provider Refinitiv. The latest deal tally includes Morgan Stanley’s MS, -5.10% blockbuster $13 billion acquisition of online brokerage E*Trade ETFC, -5.11%, which was announced on Thursday morning.
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