Global IPO Activity Continues to Rise Significantly

Global IPO fundraising activity rose by 39% in the second quarter compared to the first quarter of 2011 and increased by 38% compared to the second quarter of 2010.

 

In Q2 2011, 378 IPOs globally raised a total of US$64.6 billion, according to Ernst & Young’s Q2 2011 Global IPO update.

 

Asian exchanges still dominated listings this quarter, with 163 IPOs raising US$27b, (42% of global capital raised) followed by European (27%), and North American exchanges(24%).

 

However, Asia’s current lead now falls far short of its dominance in Q3 2010 when Asian exchanges made up 81% of global capital raised. The top three sectors globally were the materials, industrials and energy accounting for 45% of IPOs total value.

 

“Reflecting the huge pent-up demand for capital, we saw a continued strength in Asian capital markets and continued revival of IPOs across Europe and North America, led by IPO deals from the materials, industrials, energy and technology sectors,” says Maria Pinelli, Global Vice Chair for Strategic Growth Markets for Ernst & Young.

 

Asia Sustains Lead But is Losing Momentum

Asian exchanges still leads the world in IPOs, but lost some of its previous dominance in Q2.

 

Asian exchanges completed 163 deals which raised US$27 billion, an 11% raise in capital raised compared to Q2’10.

 

The largest IPO on Asian exchanges in Q2 was the US$2 billion listing of Italy’s luxury fashion retailer Prada on the Hong Kong Stock Exchange.

 

The Hong Kong Stock Exchange in Q2 raised US$11.3 billion in 19 deals, while the Shanghai and Shenzhen Stock Exchanges (SME and ChiNext) raised US$10.3b in 77 deals altogether.

 

“Chinese IPO activity has slowed down, with investors restrained by Chinese inflationary concerns over commodity prices and housing prices.” says Pinelli. “Even so, the Chinese IPO pipeline is still very strong, containing large state-owned enterprises, and mid-cap companies.”

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