With over one-third of global IPO activity, China dominated, empowered by its vigorous economic growth.
IPO markets worldwide are expected to accelerate in the second half of 2010, a reflection of a stabilizing global macroeconomic environment and the many fast-growth businesses which seek funding for the next stage of their evolution.
While robust Asian markets continue to drive global IPO activity, Europe and the US have also seen a resurgence of new issuances.
Equity story shifts to growth
In the aftermath of the subprime crisis, the first half of 2009 saw a dormant IPO market and large amounts of secondary capital raised due to balance sheet repairs. However, by the second half of 2009, the equity story had begun to shift to one of growth, particularly in the emerging markets.
Recovery in the works despite Eurozone debt crisis
In the first half of 2010, global listings continue to recover, despite market volatility sparked by the euro zone sovereign debt crisis.
With over one-third of global IPO activity, China dominated, empowered by its vigorous economic growth.
Polish privatizations, UK-based commodities firms and private equity rejuvenated European IPOs while fast-growth stocks, industrial and financial firms, and Chinese listings characterized the US IPO market.
Financial firms, insurance raise a quarter of global proceeds
Companies from a wide range of sectors, geographies and investment profiles are tapping the public markets. However, financial firms, particularly insurance, raised about a quarter of global proceeds in the first half of 2010. Materials and industrial firms were also highly active, fueled by emerging market demand for commodities.
IPOs seen as a viable exit strategy
Also, as equity markets have strengthened, IPOs have become a viable exit strategy again for financial sponsors. While cash-rich investors are keen to put money into equity, in the wake of the global financial crisis, they have become much more disciplined and valuation-driven.
Investors are requiring a bigger IPO discount to take on risk and are targeting unique equity stories with strong growth prospects.
