Alibaba opens IPO investors’ eyes

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Written by Sebastian Wanke | 15 September 2014
Posted in Special research

The current sentix Global Investor Survey shows a remarkable development: sentix IPO Senti-ent rises strongly for the first time this year. The improvement of the indicator takes place against the backdrop of the coming US-IPO of Alibaba, a Chinese internet company. This event obviously also has an influence on European investors and lets their readiness to take on new issues rise.

sentix IPO Sentiment climbs by 11.75 to -19.5 points in September. This is a clear counter-movement to the negative tendency which could be observed since the end of last year. The jump in sentiment occurs against the background of the coming US-IPO of Alibaba. The going public of the Chinese internet giant overseas has also opened the eyes of European investors regarding new issues. As a result, the environment for IPOs on this side of the Atlantic – like for Zalando in October, for instance – has improved significantly.

This development has an ironic touch: On the one hand, IPOs are out of fashion since the bursting of the dotcom bubble at the beginning of the century. sentix IPO Sentiment is a good example for this disenchantment as the index has always been in negative territory since its launch in 2005 – meaning that investors since then prefer other asset classes over IPOs. On the other hand, over the past months it is repeatedly internet companies – Facebook 2012, Twitter 2013, Alibaba now – that give investors' sentiment a boost. Obviously, investors' interest in "stories" is back. And this gives issuers more leeway for their pricing.

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Background

sentix IPO Sentiment is surveyed on a monthly basis since July 2005 and part of the sentix Asset Class Sentiment survey which is regularly conducted around the second Friday of each month. Further indicators of the sentix Asset Class Sentiment family of indices are sentix Bitcoins Sentiment, sentix Commodities Sentiment, sentix Credits Sentiment, sentix Emerging Markets Bonds Sentiment, sentix Emerging Markets Equities Sentiment, and sentix Real Estate Sentiment.

Participants in the surveys on asset class sentiment may choose a category from a range of 1 to 5 to show how inclined they are towards an asset class in relation to the others. The indicator may fluctuate between -100 and +100 while category number 3 of the given range marks the zero line and signals neutrality.

The current survey was conducted from September 11 to September 13, 2014. 984 investors took part in it.

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