2021 is a record year for global IPOs
2021: The year for IPOs. Global IPOs have raised more than USD 600 bn so far in 2021, smashing a previous record with six weeks still to go in the year, according to Bloomberg. A record 2,850 companies and blank-check firms have debuted on stock exchanges around the world this year, beating the previous record of USD 420 bn set in 2007.
The biggest IPO of the year: The Amazon-backed EV startup Rivian, which raised almost USD 12 bn in its IPO on the Nasdaq earlier this month to become the biggest US listing since Facebook in 2012.
Analysts attribute the boom to covid stimulus which has flushed the financial markets with unprecedented amounts of liquidity and prompted frenzied retail trading that produced huge post-IPO pops.
Don’t expect more of the same in 2022, as central banks begin to withdraw stimulus: “As monetary stimulus programs are scaled back, and if global growth slows sharply, markets could be heading for a correction,” said one analyst. “Over-valued companies will feel the pain much faster than others.”
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EGX30 |
11337.99 |
-1% (YTD: +4.5%) |
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USD (CBE) |
Buy 15.66 |
Sell 15.76 |
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USD at CIB |
Buy 15.66 |
Sell 15.76 |
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Interest rates CBE |
8.25% deposit |
9.25% lending |
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Tadawul |
11,710 |
-1% (YTD: +34.8%) |
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ADX |
8,349 |
+0.1% (YTD: +65.5%) |
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DFM |
3,265 |
+0.1% (YTD: +31%) |
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S&P 500 |
4,698 |
-0.2% (YTD: +25.1%) |
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FTSE 100 |
7,224 |
-0.5% (YTD: +11.8%) |
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Brent crude |
USD 78.89 |
-2.9% |
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Natural gas (Nymex) |
USD 5.07 |
+3.3% |
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Gold |
USD 1,854.30 |
-0.5% |
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BTC |
USD 59,685 |
+3.1% (as of midnight) |
THE CLOSING BELL-
The EGX30 fell 1.0% at Thursday’s close on turnover of EGP 834 mn (43.3% below the 90-day average). Local investors were net buyers. The index is up 4.5% YTD.
In the green: Sidi Kerir Petrochem (+3.0%), Credit Agricole Egypt (+2.7%) and Ezz Steel (+2.6%).
In the red: Aspire Capital (-3.1%), Mopco (-2.7%) and AMOC (-2.7%).