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Friday, July 14, 2017

Fun Fact: IPOs vs Delistings in the US from 1998-2013

We encountered the chart below in the Bloomberg Terminal and found it quite amazing.

Key takeaways:

1. The number of publicly listed stocks in the US has been going down in the last 15 years. Because the number of Delistings > the number of IPOs.

2. As an investor in the PSE, this chart gives you a sense how small our market is vs the US. Imagine listing 500+ companies in 1 year (Year 1999)! - to put that in context context there were only 8 IPOs in the Philippines in the year 2016. We have a long way to go! But... We are on the way :)

3. This chart kind of reminds us to be humble. That's because on IPO's all the glamorous pictures, smiling faces on the opening bell and stock promotions are there. But on delistings, it's usually because the company failed to meet exchange requirements, corporate bankruptcy, buyout etc. which is usually not a very rosy picture. 

 IPOs vs Delistings in the US from 1998-2013

Source: Bloomberg

This is not an investment advice and the author shall not be responsible or liable for any trading or investment decisions made based on this information.

The author hereby expressly disclaims any responsibility for any error or inaccuracy in the information.

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