Global IPO trends report 2008

In 2007, global IPO activity reached an all-time high of US$287 billion through 1,979 deals. Brazil, Russia, India and China (BRIC countries) accounted for 40% of the global IPO proceeds. In the first quarter of 2008, 236 global IPOs raised US$40.9 billion. While mature markets endure an IPO slowdown, many emerging markets continue to flourish, bolstered by vibrant economic growth. Eight of the quarter’s top 10 IPOs were companies based in the emerging markets.

In the first quarter of 2008, almost all global IPO markets lost their momentum as 236 IPOs generated US$40.9 billion, a 38% drop in numbers and a 15% decline in capital raised from the first quarter of 2007 (see figure 4, page 7 full version of report). The top 3 IPOs by value were the US$19.6 billion offering of Visa Inc. in the largest US IPO ever, the US$5.5 billion IPO of China Railway Construction Corp. Ltd., and the US$2.9 billion listing of Reliance Power in India. Notably, eight out of the top 10 IPOs represented companies from the emerging markets. Thus, while developed markets endure a slowdown, many emerging markets continue to prosper and produce IPOs, bolstered by robust economic growth.

Emerging markets continue to drive the global IPO markets, despite financial volatility. In early 2008, market turmoil triggered by the credit crunch led to a sharp deceleration in many IPO markets around the world. Faced with more scrutinizing investors and stringent valuations, record numbers of businesses withdrew or postponed their IPO plans. Even so, many more companies still wait in packed IPO pipelines, ready to go public once market conditions improve. High-quality enterprises, primarily from the emerging markets, continue to be well received by the world’s public markets.

Other key global IPO trends:

• Global IPO markets exhibited a rich diversity of geographies, industries and types of companies.
• Since capital follows a good investment story wherever it’s listed, almost all companies list on their increasingly liquid local exchanges at home.
• Companies have a choice of many alternative capital sources, including private equity, venture capital, hedge funds, private placements and sovereign wealth funds.

“Global IPO trends report 2008” includes eight in-depth profiles of regional markets and countries in the Americas, Europe, the Middle East and Asia as well as our perspectives on IPO markets; transaction types; IPO readiness, structuring and other considerations; and the implications of IFRS for companies going public.

• Australia
• Brazil
• China
• Europe
• India
• Middle East
• Russia
• United States

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