Although volatility was high this year, 2010 is heading towards breaking initial public offerings (IPOs) records, say Ernst & Young analysts.
The total IPO value this year was boosted by a flourishing market in Asia, which accounted for some 64 percent of initial listings this year. According to Ernst & Young, initial public offerings have reached 255.3 billion dollars this year, December excluded. As such, there is still time left for 2010 to beat the 2007 record of 295 billion dollars.
With somewhat low interest rates and good liquidity, world investors have been looking for higher exposure to the growing Asian market, as well as other emerging economies, say Ernst & Young experts.
Governments’ measures of improving infrastructure in emerging economies boosted production in many industrial sectors, while financial institutions in Asia, insurance groups and banking groups alike, were leaders in the global IPO race. China alone was responsible for approximately half of the global IPO value, mainly on grounds of high appeal on the part of investors in its growing companies.
Although Europe has seen very volatile markets this year, the IPOs of 2010 were about 500 percent higher than those in 2009.
The last quarter of this year is expected to be the most valuable quarter yet since the same period of 2007, as it has seen 294 closed deals and it already raised 102.8 billion dollars. As a result, beating the fourth quarter of 2007 is quite possible, since the previous quarterly IPO world record was of 104.8 billion dollars.
Analysts believe that the current trend will continue next year as well, as new IPO filings take place and investors are just waiting for a more stable macroeconomic environment.
