A record-breaking number of emerging market companies made their public debuts in 2021, just ahead of what should be a tough year for equity investors.
The rush of new listings may have satiated some market demand, especially in the tech sector, said Arnau, who sees fewer small deals making the cut this year, regardless of their quality.“There are plenty of high-quality companies out there with proven concepts, profitable business models and great track records trading at very cheap valuations,” he said.
The diversity in performance may have to do with regional recovery trends, as well as the types of companies that went public and outperformed last year. Newly listed Asian consumer, industrial and technology stocks were among those that rose, on a weighted-average basis, as did many of the companies that went public from the Middle East and Africa in the utilities and energy spaces.