Industry IPOs reach three-year record in 2021
Analysis from GlobalData claims that initial public offerings (IPOs) in the telecoms, media and technology (TMT) space increased 72% last year when compared to 2020.
The figure set a new three-year record driven by ecommerce, mobile, fintech and cloud companies.
In total, 2021's IPOs raised $237 billion in proceeds, were nearly 2.5 times higher than in 2020.
Priya Toppo, Thematic Research Analyst at GlobalData, said: “Despite the continued effects of the pandemic, three of the quarters in 2021 saw higher TMT IPO proceeds compared to any quarter in the last four years. The most lucrative themes for investors in TMT IPOs over the last four years were cloud, fintech, cybersecurity, mobile, and gaming.
“Cutting-edge technologies such as electric vehicles, digital media, healthtech, IoT, gaming, artificial intelligence (AI), and cybersecurity have been moderately successful in raising capital. By contrast, we have only just started seeing listings of early-stage technologies like blockchain, quantum computing, metaverse, and the space economy.”
Elsewhere in its announcement GlobalData went on to say that ecommerce was the strongest sub-sector for the period 2018-2021, followed by mobile, fintech, and cloud.
In its report for those three years, GlobalData confirmed 2021 was also a record year for billion-dollar TMT IPOs, indicating that not only is TMT IPO activity increasing, but companies in the space are raising larger amounts in their listings.
Toppo added: “To put the current levels of mega deals into perspective, over the three years 2018 to 2020, the equity proceeds from 45 TMT IPO listings each raised $1 billion or more. In 2021 alone 53 listings have each raised this amount.”
As Capacity reported, 2021 saw IPO announcements from MTN Uganda, IHS Holdings, STC, Mitratel, Yahsat, Quantum Exponential and Antin.
EV start-up Rivian took the number one spot in 2021, raising $11.9 billion in the US in November, followed by China Telecom’s listing in Shanghai which raised $8.4 billion and Kuaishou Technology’s listing in Hong Kong which raised $5.3 billion.