{"id":547109,"date":"2022-06-08T04:21:08","date_gmt":"2022-06-08T04:21:08","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/06\/08\/no-year-for-ipos-the-tough-times-are-far-from-over-for-em-assets\/"},"modified":"2022-06-08T04:21:08","modified_gmt":"2022-06-08T04:21:08","slug":"no-year-for-ipos-the-tough-times-are-far-from-over-for-em-assets","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/06\/08\/no-year-for-ipos-the-tough-times-are-far-from-over-for-em-assets\/","title":{"rendered":"No year for IPOs + The tough times are far from over for EM assets"},"content":{"rendered":"

<\/a> The value of global IPOs has plummeted so far in 2022<\/strong>, falling 71% y-o-y in the first five months of the year as rising interest rates, soaring inflation and geopolitical uncertainty fuel volatility in the financial markets, the Financial Times<\/a> reports, citing data from Dealogic. Companies raised USD 81 bn during the five-month period, down from USD 283 bn in 2021, while the number of listings has dropped from over 1.2k to 596.<\/p>\n

It\u2019s even worse in the US and Europe:<\/strong> The amount raised in IPOs in the US and Europe has plunged 90% to USD 17.9 bn, with just 157 companies going public compared to 628 last year.<\/p>\n

\u201cPeople are not abandoning ship \u2014 they are pausing,\u201d<\/strong> said one lawyer who provides advice on IPOs. \u201cOnce things stabilize, we will see a return of activity, even if it does not reach last year\u2019s levels.\u201d<\/p>\n

Investors are swapping Wall Street for Abu Dhabi:<\/strong> International investors have flocked to the GCC this year, where IPOs are on course for a record first half<\/a> as surging oil prices and foreign inflows protect the energy-rich region from the turbulence in the global markets.<\/p>\n

FROM THE EM-VERSE-<\/strong><\/p>\n

The rebound in emerging-market stocks last month is already in reverse<\/strong> as heightened inflation and hawkish central bank policies prolong the global risk-off, Bloomberg<\/a> says. The MSCI Emerging Markets Index had rebounded nearly 8% from a two-year low earlier in May, but this month the gauge has reverted to underperforming against developed-market stocks. \u201cIt\u2019s too early to say this is the bottom -- too early to say the only way is up,\u201d one strategist said.<\/p>\n

Also worth noting: <\/strong><\/p>\n