This article first appeared in Capital, The Edge Malaysia Weekly on December 25, 2017 - December 31, 2017

THE global initial public offering scene did not disappoint this year. A total of 1,980 IPOs made their debut on stock exchanges the world over this year, raising a total of US$220.73 billion, according to Bloomberg data.

This amount represents a significant 53.1% increase from the US$144.15 billion of proceeds raised via 1,442 deals in 2016.

The largest IPO of the year was Snap Inc, which was listed on the New York Stock Exchange. It offered 200 million shares at US$17 each, raising a total of US$3.91 billion.

Snap Inc, more famously known for its social media platform Snapchat, is the third largest tech IPO in terms of proceeds raised in recent years, behind Facebook Inc’s deal size of US$16 billion and Alibaba Group Holdings Ltd’s US$21.77 billion.

However, after a fantastic start on the NYSE, which saw its shares close 44% higher after opening at US$24, the stock has been on a downward trend. Since its listing on March 2, Snap Inc’s share price has shed 35.66%. It ended at US$15.75 on Dec 15.

Ireland’s Allied Irish Banks PLC was Europe’s largest IPO in 2017, raising US$3.84 billion. It was relisted on the London Stock Exchange at €4.40 per share. This was a significant listing for Ireland, given that the bank had to be nationalised seven years ago in the wake of the 2008-2011 Irish financial crisis.

In third place on the list of the world’s largest IPOs in 2017 is Italian tyre maker Pirelli & C SpA, which raised US$2.61 billion. However, the company’s shares were sold at the lower end of its price range of €6.50 from €6.30 to €8.30 initially.

Nevertheless, as at Dec 15, the stock had strengthened 10% since its listing to €7.15.

Looking ahead, the EY Global IPO Trends report says 2018 looks positive for listing activity. “Lower volatility across regions, equity indices still hitting all-time highs and steady investor confidence are encouraging a healthy pipeline of market-ready companies to build up across sectors and markets,” it says.

However, it cautions that geopolitical risks in many regions “remain visible points on the radar”.

It also notes that 2018 will be an exciting year for the market, given the expectation that the world’s largest oil company, Saudi Aramco, will be offering its shares to the public in one of the largest IPOs in history.

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