[Asia Economy Reporter Park Byung-hee] The scale of initial public offerings (IPOs) on the Nasdaq Stock Market in New York has surpassed that of the New York Stock Exchange (NYSE) for three consecutive years, the Wall Street Journal reported on the 6th (local time).
According to financial information firm Dealogic, as of the 3rd of this year, the amount raised through IPOs on the Nasdaq reached $191 billion. During the same period, the NYSE raised only $109 billion, about half the amount.
With the New York stock market showing a strong bullish trend this year, the IPO market has also experienced an unprecedented boom. Last year, the amount raised through IPOs was the highest ever, with the combined total from both exchanges reaching approximately $168 billion. This year, the amount raised is expected to double compared to last year.
The boom in the special purpose acquisition company (SPAC) market is analyzed as a major factor behind this year's IPO market surge. About half of the funds raised through IPOs this year were done via SPACs.
The reason Nasdaq was able to win the IPO competition against the NYSE this year is also thanks to SPACs. Of the IPO funds raised through SPACs this year, 63% were raised through the Nasdaq market. Last year's share was 39%.
Nasdaq's establishment of environmental, social, and governance (ESG) investment-related regulations, which have attracted attention as a new investment principle, was also a factor that allowed Nasdaq to gain an advantage. In August, Nasdaq introduced a regulation requiring at least one board member of listed companies to be a woman and another to be a minority or LGBTQ+ individual to increase board diversity.
Traditionally, Nasdaq has lagged behind the NYSE in the IPO competition. Over the 20 years from 1999 to 2018, Nasdaq only surpassed the NYSE three times, two of which were during the peak of the dot-com bubble in 1999 and 2000.
However, due to higher IPO fee rates, the NYSE led Nasdaq in IPO fee revenue. This year, the parent company of NYSE, Intercontinental Exchange (ICE), earned $356 million in IPO fee revenue, while Nasdaq earned $282 million.
Nasdaq's largest IPO this year was the electric vehicle startup Rivian, which raised $13.7 billion through its IPO.
Other companies that debuted on Nasdaq include semiconductor foundry company GlobalFoundries, dating app Bumble, and stock trading app Robinhood.
NYSE's largest IPO this year was South Korea's Coupang, which entered the market in March. Coupang's IPO raised $4.6 billion. Following was China's ride-sharing company Didi Chuxing, which went public on June 30 with $4.4 billion but announced on the 3rd that it would delist from the New York stock market.
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