Latest news with #Dealogic
Yahoo
05-07-2025
- Business
- Yahoo
Are Deals Back? IPOs, M&A Recover After 'Liberation Day' Blip
Deal activity appears to be picking up as investors ride the AI wave and markets hit record highs, helping 2025 look like a strong year for IPOs and M&A. U.S. IPO and M&A volumes in the first half of 2025 have hit the highest levels since 2021, which was itself a record year for deals, according to Dealogic. Read on for the prevailing trends in deals this year—and lists of the top IPOs and M&A of 2025 so a while, it looked like the boom in deal activity that was expected after President Donald Trump retook the White House wouldn't happen. Companies pulled IPOs as the Liberation Day tariffs hit sentiment, while others put acquisition plans on hold. Deals, in short, dried up. But that seems to be changing. Deal activity is picking up for a host of reasons, experts say, among them Trump's retreat from some of his harsher tariff plans and increasing investor expectations that trade deals will be struck or tariffs at least kept at their baseline levels. Add to that a relatively resilient U.S. economy and record-high stock markets and you get a recipe for rising deal volume. IPO and M&A volumes are at their highest levels in years, according to Dealogic data, after years when high interest rates put a damper on things. In the first half of 2025, 174 companies raised more than $31 billion from U.S. IPOs, the most since 2021, when a record $200 billion of funds were raised in the same year-to-date period. U.S. M&A volume so far this year has already topped $989 billion, the highest level since 2021's record year, when there were $1.56 trillion in deals in the same period. Trump's Liberation Day tariffs hit stock markets and led companies like Swedish fintech Klarna to pause plans for IPOs. That's changing as investors are piling into tech and fintech firms, and investors are eyeing the possibility of interest-rate cuts in the second half that could keep stocks rising. CoreWeave (CRWV), a cloud computing company backed by Nvidia (NVDA), has since seen its shares more than triple since its March listing. USDC stable coin issuer Circle Internet Group (CRCL) was among June's IPO stars, benefiting from the increasing popularity of crytocurrencies and bitcoin; Israel-based retail trading platform eToro (ETOR) and space and defense tech firm Voyager Technologies (VOYG) were also among June's star listings. Circle and CoreWeave "in particular have been outstanding performers and a big driver of investor interest," said Dealogic's Global ECM Head Samuel Kerr said. The pipeline of new deals is now building up again: In early July, design software maker Figma filed for an IPO. Here are 2025's top five US IPOs ranked by funds raised, according to Dealogic. LNG exporter Venture Global (VG) raised $1.75 billion from its January IPO, the most by a listing so far this year in the U.S. and the most since Lineage's $5.1 billion listing in July last year. Unlike some more recent tech IPOs, its shares have lagged below their listing price. CoreWeave (CRWV), a cloud computing company backed by Nvidia (NVDA), raised $1.57 billion from its listing on the Nasdaq in March. It had a tepid debut, but has since become one of this year's stars, trading more than three times above its $40 IPO price. SailPoint, a Texas-based cybersecurity company that private equity firm Thoma Bravo took private in 2022, made its return to public markets in February, raising $1.38 billion from its listing. Its shares continue to lag its $23 IPO price. Crypto firm Circle Internet Group (CRCL) has been one of this year's IPO stars, raising $1.21 billion from its IPO priced at $31 a share in June; the stablecoin issuer's stock is now around $189. The fifth-biggest IPO this year was the $994 million June offer by fintech firm Chime Financial. Its shares remain above their $27 IPO price. M&A volumes, which like IPOs took a hit this year, have been helped by enthusiasm for companies linked to artificial intelligence. 'Although March brought a burst of large-cap deals, optimism faded in April after 'Liberation Day' tariffs sent shockwaves through the market," Mergermarket Head Lucinda Guthrie said. "Still, the opportunities presented by the volatility in the public markets drew attention from private capital. A key deal driver in 1H25 has been M&A to fuel the evolving AI landscape. " Here are the top M&A deals so far this year in the U.S, according to Dealogic, ranked by deal size, with No. 1, the funding round into ChatGPT maker OpenAI— illustrating the allure of AI investments. (All the deal volumes are excluding debt.) The ChatGPT maker raised $40 billion in new funding from a group of investors who took a 13.3% stake in a round led by SoftBank Group. Other investors included its biggest backer, Microsoft (MSFT). Google parent Alphabet (GOOGL) struck a $32 billion cash deal for cybersecurity startup Wiz in March that would be the tech giant's largest acquisition ever. The deal hasn't closed yet. In June, Swiss building-materials company Holcim spun off its North American operations in a $28.7 billion deal. The Chicago-based cement and roofing provider started trading under the stock symbol (AMRZ). Charter Communications (CHTR) announced a $24.1 billion deal in May to buy privately held rival Cox Communications in a deal that would combine two of the U.S.'s largest cable providers. The deal has yet to close. Nuclear power producer Constellation Energy (CEG) agreed to buy private energy company Calpine for $17 billion excluding debt, a transaction that would create the largest clean energy provider in the U.S. The combined company would serve the AI boom, feeding the growing power needs of data centers. 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The Independent
04-07-2025
- Business
- The Independent
Is London's stock market in crisis?
I will be accused of 'clickbait' for posing that question. But look at the figures. There were just five new listings – or Initial Public Offerings (IPOs) – in the first half the year, raising £160m from investors. And, well, that is a miserable number. According to data company Dealogic, it is the lowest in 30 years and a fall of 98 per cent when compared with the start of 2021 (when the UK was still suffering from the effects of the pandemic). It is even lower than the level recorded in the first part of 2009, when large parts of the City were still dealing with the after-effects of the financial crisis. Once a global giant – that would get interest from any international company looking to list – the London Stock Exchange is shrinking – fast. Statista shows it hosted more than 2,400 companies at the beginning of 2015. Now, the number is less than 1,700, and falling. It's now big news today if a feisty young British growth company chooses to stay home rather than head off to Wall Street. Predators from overseas – whether other companies or private equity – see London as the perfect place to go shopping for bargains. KKR, a US private equity firm, has just had a £4.7bn offer for Spectris, a UK maker of testing equipment, high-tech instruments and software, accepted. That offer is at a 98 per cent premium to where the company's shares were trading before the takeover interest became known. Private equity companies are all about maths. They have strict targets for the returns from their assets and will only act where they feel those can be met. That KKR thinks it can still hit them while paying a 98 per cent premium speaks volumes about the low valuation this company had prior to the the former's emergence as a suitor. Even more concerning are the rumours that the giants at the top of the market are also considering booking first-class transatlantic flights. Shell was rumoured to be looking at this last year. More recent, speculation has swirled around AstraZeneca, the pharmaceuticals giant. Its loss would be a brutal blow to both the City and to the government – life sciences are a core part of its industrial strategy. All this should worry ministers who say they are committed to a dynamic, modern, and crucially growing economy. The City provides a awful lot of high-paying jobs, and pays an awful lot of tax. The decline of the IPO market will inevitably result in redundancies and a reduction in revenues. What to do? London's strict listing rules have already been eased, to no great effect. The door has opened to controversial practices, such as allowing tech companies to offer dual class shares, which concentrate power in the hands of their founders. Again, the results have proved to be singularly unimpressive. The real problem is those valuations. London was once lauded for its deep pool of investment capital, which helped to keep them healthy. Trouble is, it has dried up. Regulation has resulted in big investment institutions such as pension funds and insurance companies dropping shares in favour of lower risk assets, such as bonds. Brexit also catalysed the flight of billions of pounds of foreign capital. Retail investors have, meanwhile, shunned equities and in favour of cash ISAs – even though they often fail to beat inflation. The British government has in recent years expended a great deal of effort and energy on encouraging start-ups. Some of these have borne fruit – especially in tech, and financial tech – for which London has become a hub. It needs to pay more attention to the next phase of their development, otherwise, as ungrateful as it may seem, they'll join the transatlantic procession. They have a fiduciary duty to their investors, and as things stand, that duty will be easy to fulfil in the welcoming arms of New York. Headquarters will inevitably follow. Regulatory reform must go further and faster, along with more radical action – call it a second big bang. Reeves must face down her critics – including the likes of Martin Lewis – and reduce cash ISA limits. Personally, I'd scrap the product. Harsh? Yes. But necessary to encourage saving through equities. Investors will ultimately thank her when they see how they are rewarded. The UK also currently charges a 0.5 per cent tax on share trades above £1,000. This might not seem like much, but it soon adds up and acts as a disincentive to traders. It is much higher than the charges levied by rival financial centres. Offering the City a £3.3bn tax break is bound to prove controversial in certain quarters – especially when the government is badly strapped for cash and the beneficiaries would like be very wealthy – but it would be worth it, in my view. But here's the thing: the revenues produced by this levy are in decline – just as London as a financial centre is in decline. If scrapping it helped catalyse a revival, it would pay for itself, potentially many times over. Broker Peel Hunt says that higher valuations would translate into higher capital gains and inheritance tax receipts. This is not a new argument. I remember the frustration expressed to me by a lobbyist about a scepticism when they made the case to a Tory minister back in the 1990s. It's time for a Labour minister to be bold and show the way. It isn't yet too late to pull London out of its despairing spiral. If Reeves were to unveil an aggressive package of measures, it would serve as a statement of intent that could very quickly change the narrative, persuading the potential leavers to stay put and encouraging new entrants to test the newly welcoming waters. Improving tax revenues and growth would swiftly follow.
CNBC
04-07-2025
- Business
- CNBC
London IPO fundraising hits a three-decade low in another blow to the UK capital
Fundraising from London IPOs slumped to at least a three-decade low in the first half of this year, new data showed on Friday – raising fresh questions about the fading allure of the U.K. as a hub for global capital. The five debuts on the London market in the first six months of 2025 raised a total of £160 million ($218.6 million), according to new data from Dealogic. That's the lowest level of London IPO funds raised in the first half of the year recorded by Dealogic since it began collecting data in 1995. Even in the aftermath of the 2008 financial crisis, two London IPOs managed to raise £222 million in the first half of 2009, the data shows. London's biggest IPO so far this year was the listing of professional services company MHA, which raised £98 million at its debut on the Alternative Investment Market (AIM) in April. The listings slump in London this year adds to the city's struggles to hold onto its former glory as one of the top destinations for global capital. According to the most recent IPO Watch report from professional services giant PwC, IPO proceeds in the U.K. fell to £100 million in the first quarter of 2025, down from £300 million in the same period a year earlier. This year alone, the city's financial markets have been passed over by firms that had once planned blockbuster listings there. Shein, for example, is reported to be planning an IPO in Hong Kong after abandoning earlier plans to float its shares in London, while Glencore-backed metals investor Cobalt Holdings confirmed to CNBC last month that it had scrapped plans for a London IPO. The troubles aren't limited to new listings – in June, British fintech giant Wise announced it was moving its primary listing from London to New York, and earlier this week it was reported that pharma giant AstraZeneca – the most valuable company on London's FTSE 100 index – is considering moving its listing to the United States. Kristo Kaarmann, Wise's CEO and co-founder, said in a statement at the time that the move would help raise awareness of the company in the U.S., while giving the firm better access to "the world's deepest and most liquid capital market." Dealogic's data highlighted a significant gap between U.S. and U.K. listings so far this year. U.S. markets saw 156 IPOs in the first six months of the year, which collectively raised $28.3 billion, the figures showed. However, Samuel Kerr, head of equity capital markets at Mergermarket, told CNBC that while U.K. equity markets have "been under a cloud of negative press for some time," there could be brighter times ahead for London. "We are seeing more businesses beginning to look seriously at London listings again after several years of reform and broader uncertainty over the regulatory and policy direction of the US," he said in an email. U.K. Prime Minister Keir Starmer has touted his government's plans to revitalize Britain's capital markets, pledging to look into regulation that is "needlessly holding back investment." Last summer, the U.K.'s Financial Conduct Authority overhauled listing rules in a bid to simplify the process of floating shares on the U.K. market. "If London can convert early-stage interest in UK listings into successful IPOs, it will go some way to reversing some of the doom narrative," Mergermarket's Kerr told CNBC. Janet Mui, head of market analysis at wealth manager RBC Brewin Dolphin, pointed out that exits via IPOs were slowing globally. "It's easy to be bearish when we have news like this," she said in an email on Friday. "The reality is more nuanced, including macro uncertainty and tighter financial conditions have slowed listing globally." Last week, the Financial Times reported that Norwegian software giant Visma had chosen London for its upcoming debut on the public market. Mui argued that this news showed there was still appetite for high growth companies to list in London. "That said, more work is needed to deliver reforms to streamline listing and make London more attractive to businesses," she conceded.
Yahoo
04-07-2025
- Business
- Yahoo
ETFs to Play IPO Market's Rebound in 2025
A growing number of companies are going public and delivering strong performances, creating attractive opportunities for growth-focused investors. Recently, new listings in the United States have rebounded sharply, signaling market recovery, according to Reuters. Additionally, from a regulatory standpoint, the Trump administration is viewed more favorably by the market, signaling renewed strength. According to IPOX vice president, Kat Liu, as quoted on Reuters, a successful slate of June IPOs and a robust pipeline of well-capitalized, late-stage firms poised to go public, could set the stage for a more active Q4. Strong listings could boost investor confidence and encourage late-stage startups preparing to go public. Per data from Dealogic, as quoted on Reuters, U.S. IPOs have raised $25.36 billion (as of June 11) this year, impressively higher than the $18.22 billion raised during the same period in 2024 and $9.53 billion in 2023. Driven by solid market debuts and a rebound in equity sentiment, companies are revisiting IPO plans, fuelling market momentum. Rising expectations of interest rate cuts by the Fed and an improving global trade landscape, investor risk appetite may also increase, another tailwind for the IPO market. Below, we highlight a few funds that investors can consider to gain increased exposure to the IPO market. First Trust U.S. Equity Opportunities ETF seeks to track the performance of the IPOX-100 U.S. Index is a modified value-weighted price index with a basket of 100 securities. The fund seeks exposure to U.S. companies that have recently gone public. FPX has amassed an asset base of $948.5 million and charges an annual fee of 0.61%. The fund has a one-month average trading volume of about 25,000. First Trust U.S. Equity Opportunities ETF has gained 15.28% over the past month and 37.68% over the past year. Renaissance IPO ETF seeks to track the performance of the Renaissance IPO Index with a basket of 29 securities. The index captures approximately 80% of the total market capitalization of newly companies that have gone public within the last three years and meet certain criteria. The fund has amassed an asset base of $143.3 million and charges an annual fee of 0.60%. IPO has a one-month average trading volume of about 56,000. Renaissance IPO ETF has gained 11.35% over the past month and 9.22% over the past year. First Trust International Equity Opportunities ETF seeks to track the performance of the IPOX International Index with a basket of 50 securities. The index measures the performance of the 50 largest and typically most liquid companies that are domiciled outside the U.S. within the IPOX Global Composite Index. The fund has amassed an asset base of $153.4 million and charges an annual fee of 0.70%. FPXI has a one-month average trading volume of about 6,000. First Trust International Equity Opportunities ETF has gained 6.09% over the past month and 12.61% over the past year. Renaissance International IPO ETF seeks to track the performance of the Renaissance International IPO Index with a basket of 35 securities. The index is based upon a portfolio of non-U.S. listed newly public companies, prior to their inclusion in global core equity portfolios. The fund has amassed an asset base of $4.4 million and charges an annual fee of 0.80%. IPOS has a one-month average trading volume of about 800. Renaissance International IPO ETF has gained 6.86% over the past month and 2.43% over the past year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Trust International Equity Opportunities ETF (FPXI): ETF Research Reports Renaissance IPO ETF (IPO): ETF Research Reports Renaissance International IPO ETF (IPOS): ETF Research Reports First Trust US Equity Opportunities ETF (FPX): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
CNBC
03-07-2025
- Business
- CNBC
Hong Kong's IPO market is on fire — here's what's fueling the surge
Investors and businesses' enthusiasm for Hong Kong's equity capital markets is roaring back, as Chinese companies flocked to the city for fundraising, sparking a frenzy in the market that had been forsaken in recent years. Outsized deals and a state-backed push for companies listed in the mainland exchanges to seek a listing in Hong Kong have thrust capital-raising volume to the strongest first half-year since 2021, according to data from data provider Dealogic. New listing volumes on the Hong Kong Stock Exchange jumped around eight times to $14 billion in the first half of this year, from just $1.8 billion in the same period in 2024, according to Dealogic. That excluded SPAC listings, or special purpose acquisition companies established solely to raise capital through an IPO, with the aim of eventually acquiring or merging with another company. That puts the city on track to become the world's largest listing destination this year, surpassing the Nasdaq and the New York Stock Exchange. PwC projected up to 100 IPOs in Hong Kong this year, with total fundraising to exceed $25.5 billion. The frenzy came after years of lackluster IPO activity in the city amid post-pandemic risk-off sentiment and stuttering economic growth. In the first half of this year, there were 43 new listings in Hong Kong, with proceeds topping $13.6 billion, surpassing the total sum raised in 2024, data from financial data platform Wind Information showed. In comparison, there were only 73 listings in 2023, raising just $5.9 billion, according to HKEX data. The renewed interest is fueled by a confluence of factors, including Beijing's regulatory tailwinds, the muted pace of A-share listings, ample market liquidity, and delisting fears in U.S. markets, driving mainland companies to raise funds in Hong Kong, according to Steven Sun, head of China equity strategy at HSBC. "The IPO boom in the Hong Kong market is certainly driven by dual-listing of A-then-H [shares]," said Sun. A-shares refer to mainland-listed shares, while H-shares are those listed in Hong Kong. "More and more companies use the proceeds to fund their globalization strategy," Sun said, as the Hong Kong dollar is more fungible than the Chinese yuan in global markets. A jump in Chinese equity prices last September, triggered by expectations of stronger economic stimulus, helped turn the tide on bearish narratives about China. At the start of this year, the release of DeepSeek's low-cost but powerful model further fueled a rally in Chinese tech stocks as investors began to reassess China's capacity for innovation, spurring a rerating of Chinese equities. "Market valuations broadly have improved back to historical average levels, which provides a better backdrop for companies looking to fundraise," said Eugene Hsiao, head of China equity strategy at Macquarie. As of Wednesday's close, Hong Kong's Hang Seng index has gained a stellar 21% so far this year, making it one of the best-performing major markets globally. Hopes that Chinese authorities will likely unleash additional fiscal spending to shield the economy from any trade-related shock have further underpinned business and investors' confidence. In an apparent shift to support the private sector, Chinese President Xi Jinping told the nation's top business leaders in February that the country needs their help to deliver economic growth. That shift, coupled with the long-awaited approval by Beijing for mainland firms to list offshore, unleashed a wave of pent-up demand, particularly for high-quality, consumer-facing companies that are less exposed to geopolitical headwinds, said Lorraine Tan, director of equity research at Morningstar. Chinese securities regulator last year issued a slew of measures aimed at fast-tracking approval for eligible mainland tech companies to list in Hong Kong. Hong Kong regulators also launched a so-called "Technology Enterprises Channel" in May to facilitate IPO approvals for specialist technology and biotech companies, particularly those already listed in the mainland. "Policy encouraging leading corporate citizens to list in Hong Kong have provided a much-needed shot in the arm" in reviving IPO activity in the city, said Perris Lee, head of equity capital market at Dealogic. Another driver for Hong Kong's market rally has been the ample liquidity provided by mainland investors piling into Hong Kong shares, chasing an artificial intelligence frenzy sparked by Deepseek's breakthroughs and tapping into major capital-raising deals. The southbound net inflows, tracked through the cross-border link Stock Connect scheme, surged to a record high in the April-June quarter, since the scheme was launched in 2014, according to Wind Information. In stark contrast, China's benchmark CSI 300 has barely budged this year, up 0.2% year to date, according to LSEG data. That has prompted onshore investors to shift money to Hong Kong-listed equities, bolstering the Southbound inflows to account for nearly half of Hong Kong's daily stock turnover, according to Sun's estimates. These factors helped push a flurry of mainland China-traded companies to seek secondary listing in Hong Kong, including battery maker Contemporary Amperex Technology. Already listed in Shenzhen, the company raised more than $5 billion in a secondary listing in Hong Kong in May, in what is the world's biggest such offering so far this year. Additionally, Hong Kong's market is more "inclusive" of emerging sectors, like AI, renewable energy, digital consumption and biotech, which align with mainland firms' needs, said Wei Li, head of multi-asset investments for China at BNP Paribas. Among the over 200 active IPO applicants in the pipeline to be listed on HKEX, over 40 are companies already listed on mainland stock exchanges, Wind Information showed. Other high-profile companies that have sought a primary listing in Hong Kong this year include bubble tea retailers Mixue Group, Guming Holding and ride-hailing platform operator Caocao Inc. A Hong Kong listing for Chinese companies would also aid their global expansion plans. Amid cutthroat competition at home and flared-up trade tensions with the U.S., Beijing has called on its leading companies to expand globally and diversify their manufacturing locations. "The appetite to raise offshore funds, especially in HKD, is a reflection of broader plans to expand into overseas markets," said Hsiao. The heightened U.S.-China tensions have made Hong Kong a preferred IPO destination for many Chinese firms, over concerns that the Trump administration could order a delisting from U.S. exchanges. "A secondary listing essentially provides extra insurance for U.S.-listed Chinese companies in an unlikely event that a delisting becomes unnegotiable," said Lee, suggesting that companies are likely to have engaged financial advisors to hammer out a "plan B," with or without delisting.
