Global IPO markets could stay strong in 2015

Subject

The current state of the global IPO market.

Significance

In 2014, the global initial public offering (IPO) market recorded its strongest performance since 2010, with a total of 1,234 deals raising 263 billion dollars globally. The US market was the single best-performer, registering its best year since the record-setting 2000 that capped the dotcom bubble. Whether the IPO market can sustain its strong performance in 2015 is uncertain and depends on interest rate expectations and concerns over the impact of oil price gyrations on the energy sector.

Impacts

• Political risk and related uncertainty, especially regarding oil prices, will continue to vex equity markets in 2015.
• London IPOs plummeted during the second half of 2014 and political risk will continue to thwart any sustained reversal.
• IPOs are generating robust investment-banking fees, supporting mixed bank performance.