Global IPO activity expected to pick up in second half of 2013 driven by the US
After a slow start to 2012, momentum lifted in the second quarter, but significant macroeconomic volatility and changes in political leadership in many parts of the world weighed on global IPO activity for the remainder of the year. In the year to date, the amount of capital raised globally is down by 30% at US$118.5b. The number of deals is also down by 37% (768 IPOs), compared to full year 2011 (1,225 deals, US$170b). However, another 50 companies with a combined deal value of around US$6b are expected to list by the end of December.
The NYSE and NASDAQ exchanges raised US$44.9b in 128 deals, and NYSE raised 19% of global proceeds in 2012; leading the Shenzhen, Hong Kong and Shanghai stock exchanges (US$11.1b via 129 deals, US$9.8b via 44 deals,
US$5.3b via 25 deals respectively) for a second consecutive year.
European exchanges saw a 63% decline in capital raised (US$11.1b raised in 147 IPOs) in the first 11 months of 2012, compared to 2011 full year (US$29.7 raised in 266 deals). However, the top three largest European IPOs so far this year all happened in Q4 2012. The London Stock Exchange raised the most capital (US$3.9b in 7 deals) with 57% of capital raised coming from Russian issuers. Deutsche Börse AG ranked second (US$2.4b in 11 deals) and Euronext ranked third (US$1.5b in 9 deals).
Maria Pinelli, Global Strategic Growth Markets Leader at EY comments: “We believe the market is likely to see smaller offerings initially in 2013 while market and investor confidence builds. As the global IPO market ceases to be characterized by the sale of SOEs, whichever economy provides the most effective support to commercial, entrepreneurial businesses will become the largest capital market in the world.”