Fewer companies are listing shares on public stock markets this year as trade tensions between the US and China and a dimming growth outlook deter businesses.
This year 845 companies have listed shares in initial public offerings globally, 25 per cent fewer than during the same period in 2018 and the lowest level in three years, according to data from Dealogic. Companies have raised $116bn across these deals, 23 per cent less than last year and the lowest amount since 2016.
The drop was due to fears that global economic growth was slowing and uncertainty related to a geopolitical flashpoints including US-China trade tensions, Britain’s exit from the EU, Hong Kong protests and a potential nuclear deal with Iran, said Martin Steinbach, IPO leader for Europe, the Middle East, India and Africa for EY, the consultant.