E & Y Finds IPO Activity Slowed Down Rapidly Amid Financial Disorder

As identified by the Ernst & Young Global IPO update, global Initial Public Offering activity during the 1st quarter of 2008, decreased rapidly in wake of the credit crunch, as well as sustained financial disorder. The number of Initial Public Offerings decreased by approximately sixty percent during the 1st quarter of 2008 compared to the 4th quarter of 2007.

In the 1st quarter of 2008,

approximately US$40.9 billion was raised by around 236 IPOs which was sixty percent less compared to US$102.1 billion in the last quarter. Due to constant instability, twenty four companies all over the world deferred their listings and eighty three companies withdrew their Initial Public Offerings. Gil Forer, the Global Director of IPO Initiatives at Ernst & Young said that the instable market conditions and the credit crunch have caused a slow down in the global Initial Public Offering activity.

Gil Forer also said that the capital increased by Reliance Power Ltd, China Railway Construction Corporation Ltd and Visa Inc., reflects that well developed companies are capable of attracting the interest of investors. He further added, "While the mature markets are experiencing a slowdown, the emerging markets are still thriving and will continue to drive global IPO activity, as long as they experience robust economic growth."

Three out of top ten Initial Public Offerings during 1st quarter of the year 2008, were Chinese; greatest number of the deals were produced by Australia, then China, Japan, Canada, Poland and India. NYSE (New York Stock Exchange), HKSE (Hong Kong Stock Exchange) and NASDAQ were top 3 exchanges during this quarter. Materials companies, by number of listings, led with twenty-six percent market share of Initial Public Offerings followed by financials and industrials.


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