Strong global IPO market in Q1 sets tone for 2010
Online, May 6, 2010 (Newswire.com) - India,12 APRIL, 2010 - Global IPO activity in the first quarter of 2010 showed substantial improvement over Q1 2009. Results were driven by an ongoing robust Asian market and the revival of European listings, according to Ernst & Young?s Q1 2010 Global IPO update. With 2010 IPOs in the first quarter of the year India had the 3rd largest number of IPOs, after China and USA.
In Q1 2010 there were 267 deals globally worth US$53.2billion compared to the 52 deals which raised US$1.4 billion in Q1?09, marking a fivefold increase in the IPO activity, globally.
R Balachander, Partner and National IPO Leader , Ernst & Young India, says "India has made a good beginning in the first quarter of the year, we have experienced some successful issues which will attract many others to list. India is likely to witness heightened IPO activity in the second half of the year".
Gregory K. Ericksen, Global Vice Chair for Strategic Growth Markets for Ernst & Young adds, "Emerging market activity continues to be strong, but we also saw a revival of activity in Q1 in key markets such as Tokyo, London, Paris and Frankfurt. Despite concerns about volatile market conditions at the beginning of this quarter, we expect that investors will continue to return to the European and North American markets as the global economy improves." Q1 continued appetite for IPOs in Asia
The largest IPO in Q1 and the biggest IPO in two years was Dai-ichi Life Insurance Co Ltd, which listed on Tokyo Stock Exchange in March at US$11.0 billion. This is the biggest IPO since the US$19.7 billion Visa IPO in March 2008 and the largest Japanese IPO since NTT DoCoMo?s listing in 1998. China continued to lead global activity with 109 deals (accounting for over 41% of total deals globally), and raising US$19.4 billion (37% of global fund raised).
In Q1, India completed 20 IPOs listing on Bombay Stock Exchange which raised US$1.2 b and Brazil conducted 5 IPOs which raised US$3.3b locally on the Bovespa.
"Fast growth companies from the BRIC countries continued to list on their local stock exchanges as there was no dearth of investible funds. Exchanges in India are now mature enough to source funding for the very large issues too" says Balachander. IPOs by sectors and Future Outlook
The leading sectors by funds raised globally were from the financial1 sector (particularly insurance companies), which raised US$16.4billion (in 16 IPOs); materials2 sector with US$10.2b and the industrials3 sector with US$7.9 billion.
The leading sectors in India were Infrastructure including logistics, real estate and construction, retail, and IT companies. A number of companies were waiting for the markets to look up since long and had postponed their capital raising plan for investment sentiment to improve. Many of them are likely listers this year? says Ernst & Young India?s R Balachander.
Notes to editors
Ernst & Young is unique among professional services firms with IPO competency centers in key markets around the world, providing consistent, comprehensive professional services to the global IPO market.
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