2010 set to be record IPO year despite volatility

2010 set to be record IPO year despite volatility

London: The amount raised globally from initial public offerings (IPOs) in 2010 is on track to beat any other year on record, according to Ernst and Young, despite waves of market volatility which disrupted many planned listings.

Fuelled by a booming Asian market—which has accounted for 64% of total IPO values— listings raised $255.3 billion in the first 11 months of 2010, and by year-end are expected to top the 2007 peak of $295 billion, the accountancy group said.

“Benefiting from relatively low interest rates in developed markets and abundant liquidity, global investors in the last 11 months have been avidly seeking exposure to the growth in Asia and other emerging markets," said Gregory Ericksen, global vice-chair for strategic growth markets at Ernst and Young.

Asian insurance companies and banks drove global IPO markets, he added, while a focus by emerging markets on modernising infrastructure also provided support for activity in the industrial and materials sectors. China, boosted by investor demand for its high growth companies, dominated issuance, contributing almost half the total raised globally.

Despite volatile markets, Europe still saw a more than 500% increase on the amount of IPO funds raised versus the same period in 2009.

The three months to December, which has already seen $102.8 billion raised from 294 deals, are expected to see the highest quarterly global IPO value on record, beating the $104.8 billion achieved in the final quarter of 2007.