Global IPO market stalled again

in #steempress8 years ago

The global IPO market stalled again, causing additional pressure over the global economy and technological industry. And it seems the situation will not improve soon, after only three technology companies have filed papers for an IPO to June. The investors are too addicted to the shares they consider safe, just as business in America is too fond of redemptions.
For example, statistically the the IPO of the website Trivago was a good deal, as the German company is large enough and generate revenue of 657.4 million EUR in the first nine months of the year, having 18.3 million EUR earnings before interest and taxes and even grow decently with sales growth of 12%. However, the company's shares debuted at a lower price, currently traded at a price of 11.81 USD per share.
Globally, only 1,087 companies went public in 2016, which is 32% less compared to 2015 and the lowest level since 2012. The problem is particularly severe for technology companies, as from 200 and more startups whose IPO is estimated at billions of dollars, this year public became only 20 American companies. Overall the global IPO market experienced its third worst year in history and the worst since 2009.
Although S&P 500 increased by 234% and the Nasdaq Composite grew by 329%, the picture in IPO market is not so nice. It is largely dead by 2011, and in the coming years we did not see the level of activity of mid-2000's, not to mention the late 90s.
Now there is a logical argument for the revival of the IPO market in 2017, which analysts rely on the contagious effect of the tax plans of the newly elected US president Donald Trump. The expectations are technology companies to become more realistic about the assessments as tight operations with the aim of a recent gain.
Goldman Sachs predicts that companies will use the funds most of the tax benefits of Trump to buy back shares of their own companies. This is not the worst idea, as the shrinking volume of shares will increase earnings per share, but it is not a reliable way to generate returns. The macroeconomic is pretty useless, as redemption takes capital that could be used for new products and even be used for start-up companies.
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Posted from my blog with SteemPress : http://marketsfinance.staging.wpengine.com/global-ipo-market-stalled-again/

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