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Monday, 19 September 2022

The US tech IPO market hasn’t been doing this badly since the 1990s

The US tech IPO market hasn’t been doing this badly since the 1990s: The 2022 market sell-off is proving worse for US tech IPOs than either the 2008 financial crisis and the dot-com bust, according to Morgan Stanley research picked up by the Financial Times. Wednesday will be the 238th day without any tech listings worth more than USD 50 mn, surpassing the droughts seen during both of this century’s major market crashes. Following last year’s market boom, tech stocks have been particularly hard hit by this year’s sell-off, with the Nasdaq down almost 28% year-to-date compared to c.19% for the S&P 500.

And the broader IPO market? Volumes are down 94% y-o-y. Companies have raised just USD 7 bn so far this year, compared to the record-breaking USD 110 bn in the same period last year, according to Dealogic data.

Also worth noting:

  • Arabian Drilling hired HSBC Saudi Arabia as lead manager on its upcoming Riyadh IPO: Goldman Sachs and SNB will also join HSBC as joint advisors, bookrunners, and underwriters. The Saudi firm will offer a 30% stake (26.7 mn shares) in the IPO, which could value the company at as much as USD 1.4 bn. Bookbuilding is set to run from 28 September to 5 October. (Intention to list, pdf)
  • Chinese manufacturers struggle as US turns up the heat: The MSCI China index has fallen 7% this month amid investor concern about the Biden administration’s recent moves to isolate the country’s tech industry. (Bloomberg)
  • Porsche could be Europe’s third-largest IPO ever: Volkswagen had valued iconic sports car brand Porsche at EUR 70-75 bn ahead of its IPO in Frankfurt. The company priced preferred shares at EUR 76.5 to 82.5 apiece, which would make it Germany’s second-largest IPO and Europe’s third-biggest ever at the upper end of the pricing range. (Statement | Reuters)

Down

EGX30

9,763

-3.1% (YTD: -18.3%)

Up

USD (CBE)

Buy 19.36

Sell 19.47

None

USD at CIB

Buy 19.39

Sell 19.45

None

Interest rates CBE

11.25% deposit

12.25% lending

Down

Tadawul

11,572

-2.2% (YTD: +2.6%)

Up

ADX

10,202

+1.8% (YTD: +20.2%)

Up

DFM

3,489

+0.8% (YTD: +9.2%)

Down

S&P 500

3,873

-0.7% (YTD: -18.7%)

Down

FTSE 100

7,236

-0.6% (YTD: -2.0%)

Down

Euro Stoxx 50

3,500

-1.2% (YTD: -18.6%)

Up

Brent crude

USD 91.35

+0.6%

Down

Natural gas (Nymex)

USD 7.76

-6.7%

Up

Gold

USD 1,683.50

+0.4%

Down

BTC

USD 19,395

-3.3% (YTD: -57.7%)

THE CLOSING BELL-

The EGX30 fell 3.1% at yesterday’s close on turnover of EGP 1.27 bn (25.2% above the 90-day average). Local investors were net buyers. The index is down 18.3% YTD.

In the green: QNB Alahly (+7.0%), CIRA (+1.6%) and Oriental Weavers (+0.5%).

In the red: Fawry (-9.1%), GB Auto (-8.7%) and Heliopolis Housing and Development (-8.4%).

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