Global IPOs to continue rise, indicates E&Y
A REPORT by Ernst & Young shows global IPO activity has continued its momentum despite current market conditions.
The figures, which come from E&Y’s seventh annual global IPO report, demonstrates both in terms of funds raised and deals completed that the momentum created in the first quarter has been sustained into the second of this year.
According to the Global IPO Trends Report 2010, global IPO activity raised $46.1bn (£30.4bn) in the second quarter compared with $52.6bn in the first quarter, but the number of deals rose from 290 to 301.
Compared with the first half of 2009, this year represented a significant increase, with the total deals worldwide rising from 134 to 590 and the funds raised shooting from $11.8bn to $98.8bn.
The UK, however, saw a slight dip from the first to second quarter, with the number of deals dropping from 14 to 11, and the amount raised from IPO’s sliding £366m from £1.789bn to £1.423bn, something the report puts down to the impact of the General Election.
Gregory K Ericksen, global vice chair for strategic growth markets at Ernst & Young said: “The market for IPO’s has been challenging due to the ongoing volatility in global stock markets on the back of the sovereign debt crisis. However we are seeing a significant increase in the interest of the number of companies proceeding with a listing.”
Ericksen is confident the IPO market will continue to grow and points out that Asia is
leading the global recovery in the capital market, raising $25.7bn in the second quarter
and accounting for 65 per cent of the global market, including the largest global IPO, Samsung Life Insurance, which raised $4.4bn in April in Korea.
The second quarter has seen a strong showing in Europe, with Poland launching 20 IPO’s, including two of the largest globally, while the continent overall accounted for 18 per cent of the funds raised, compared with 12 per cent from North America.