No IPOs in Switzerland: IPOs continue to advance

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A total of 350 companies worldwide went public in the third quarter, auditing and consulting firm EY noted in a study published Tuesday. There were 371 people in the same quarter last year. Export volume continued to shrink by 27 percent, falling to 38.4 billion dollars.

Developments in the third quarter were inconsistent. While the US recorded 33 IPOs with an issuance volume of US$ 8.6 billion (previous year: 2.5 billion), an increase of 14 percent compared to the same period last year, China carried out only 105 IPOs (-33 percent). $16.8 billion. A total of 40 companies (-5%) with an issuance volume of US$ 5.6 billion (-53%) were listed on European stock exchanges.

A true initial public offering (IPO) with a capital increase did not take place in Switzerland in the third quarter of 2023. However, another GDR (Global Depository Receipt) listing of a Chinese company has been registered. Zhejiang Huayou Cobalt Co Ltd’s issuance volume amounted to $582.5 million, making it Europe’s fourth-largest IPO in the third quarter, according to EY. GDR are deposit receipts from Chinese companies.

The three largest IPOs in Europe in the third quarter were Hidroelectrica SA (issuance volume US$ 2.05 billion), Schott Pharma AG & Co KGaA (US$ 856.0 million) and Thyssenkrupp Nucera AG & Co KGaA (US$ 658.2 million). dollar).

The technology sector accounted for approximately 40 percent of global export volume in the third quarter of 2023. The IPO of the British technology company Arm Holding plc became the largest IPO of the year in the USA with an issuance volume of $5.2 billion.

In the fourth quarter of this year, the Swiss IPO market is likely to see an increase, particularly as a result of the pharmaceutical company’s decision to spin off its generics subsidiary Sandoz and its IPO on October 4, 2023. Sandoz shares will be included in the SLI and SPI indices, among others.

Tobias Meyer, Head of Transaction Accounting and IPO Services at EY Switzerland, is cautiously optimistic about the rest of the year, or more precisely the first half of 2024. IPOs from ARM, Nucera, and Schott serve as catalysts and fuel for more IPO activity in the fourth quarter. Additionally, Sandoz’s spinoff in Switzerland could create a positive signaling effect. As was the case last quarter, technology as well as energy and ESG-related stock sectors will likely have the greatest chance of success. “There are enough suitable candidates.”

(SDA)

Source :Blick