New data from Dealogic, first reported by the Financial Times, shows the global initial public offerings (IPO) market is imploding as a synchronized global slowdown gains momentum.
Nearly 845 companies listed their shares via IPOs globally so far this year, that's a 25% decline versus the same period in 2018 and the lowest level since 2016.
"In more than two decades in the IPO market I've never seen so many risk factors and uncertainties," said Martin Steinbach, IPO leader for Europe, the Middle East, India and Africa for EY, the consultant. "These uncertainties create volatility like we saw over the summer period and volatility has a negative correlation with IPO activity."
Dealogic said Europe was the worst region for IPOs in 2019. Activity plunged by nearly 40% so far this year compared to the same period last year. The US posted a 23% decline.
As shown in a series of charts below, 2019 IPOs in the US have been a complete bust. Any millennial who bought into the whole CNBC hype of buying Lyft and Uber at IPO day is significantly in the red, and will be in the red for a generation to come.
Other IPOs, including Levi Strauss and Pinterest, are also underperforming as well.
WeWork co-founder Adam Neumann was removed from management this week. The company, only several months ago, had an estimated $47 billion valuation, then dropped from $20 billion to $10 billion for its IPO in the last several weeks, now has been put on hold.
The IPO of Aramco, the world's largest oil company, was put on hold last week after missile and drone attacks damaged one of its facilities in Saudi Arabia. The IPO is now slated for 2020 to 2021 - depending on market conditions and of course crude prices.
In the Asia-Pacific region, IPO activity so far this year dropped 9%, versus the same time last year.
The window to IPO companies around the world appears to be rapidly closing as a global trade recession is imminent.
We noted earlier this week that a fascinating trend is developing among the ultra-wealthy: the dash for cash ahead of the next market crash.