Aramco, Alibaba rescue sluggish 2019 global ECM market

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Giant listings by Saudi Aramco and Alibaba rescued a sluggish year for equity capital markets (ECM) in 2019 after a string of shelved initial ...

LONDON: Giant listings by Saudi Aramco and Alibaba rescued a sluggish year for equity capital markets in 2019 after a string of shelved initial public offerings and share price slumps.

Other notable cancellations included Reassure - the UK arm of reinsurance group Swiss Re - and Italian luxury yacht maker Ferretti. The cancellations also reflected a weakening global economy and political volatility, with Asian deals suffering from the anti-government protests in Hong Kong. In Europe just US$23.8 billion was raised, a 43.4per cent slide from 2018 and the lowest volume in seven years, leaving the United States as the only major region to top last year's IPO volumes.

"Increasingly, issuers and vendors have the opportunity to delay their IPOs...and give them another 1-2 years in the private market," said James Fleming, co-head of global equity capital markets at Citi.

 

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