Record Wave of Emerging-Market IPOs Meets Investors Wary of Risk
- Developing-nation companies raised $228b via IPOs in 2021
- But new shares came amid dwindling appetite for risky assets
This article is for subscribers only.
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.
While the price of most newly issued stocks has risen since their IPOs, the benchmark gauge of developing-economy stocks just wrapped up its worst year since 2018. That suggests appetite for the risk assets is dwindling, with quick-spreading virus variants and higher interest rates set to further challenge equities in coming months.