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Sunday, 21 November 2021

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.”

Down

EGX30

11337.99

-1% (YTD: +4.5%)

None

USD (CBE)

Buy 15.66

Sell 15.76

None

USD at CIB

Buy 15.66

Sell 15.76

None

Interest rates CBE

8.25% deposit

9.25% lending

Down

Tadawul

11,710

-1% (YTD: +34.8%)

Up

ADX

8,349

+0.1% (YTD: +65.5%)

Up

DFM

3,265

+0.1% (YTD: +31%)

Down

S&P 500

4,698

-0.2% (YTD: +25.1%)

Down

FTSE 100

7,224

-0.5% (YTD: +11.8%)

Down

Brent crude

USD 78.89

-2.9%

Up

Natural gas (Nymex)

USD 5.07

+3.3%

Down

Gold

USD 1,854.30

-0.5%

Up

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%).

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

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