Ernst & Young: Global IPO activity expected to pick up

By Rob Starr, Content Manager, Big4.com

Ernst & Young’s Year End Global IPO Update shows that in the year to the end of November, there were 768 IPOs globally which raised US$118.5b, down 37% and 30% respectively compared to full year 2011.

Maria Pinelli, Ernst & Young’s Global Vice Chair Strategic Growth Markets comments:

“Looking ahead to 2013, we expect a better outlook, with a strengthening US economy leading the recovery, followed in the latter half of the year by Europe and Asia. Reduced stock market volatility, assertive action from central banks and brighter economic prospects suggest 2013 could be the right time for companies currently in the pipeline to list.”

This quarter, the US markets raised US$7.3b (29 IPOs), narrowing the lead on the Asian markets, which raised US$8.8b (59 IPOs). European exchanges also saw something of a return to form, with deal value reaching US$7.0b (20 IPOs). Globally, year-on-year, the picture for Q4 remains somewhat depressed. The number of deals fell 46% from 255 deals in Q4 2011 to 136 deals in Q4 2012, whereas by capital raised, it only fell 6% from US$29.1b in the same period last year to US$27.3b this quarter.