Capital raised from global IPO down by 30% in 2012 – Ernst & Young

The amount of capital raised through the global IPO market has fallen by 30% at $118.5 billion, according to Ernst & Young a global business in assurance, tax, transaction and advisory services.

After a slow start to 2012, momentum lifted in the second quarter, but significant macroeconomic volatility and changes in political leadership in many parts of the world, weighed on global IPO activity for the remainder of the year, Ernst & Young said in its Year-end Global IPO update.

It indicated that in the year to date, the amount of capital raised globally is down by 30% at $118.5 billion. The number of deals is also down by 37% (768 IPOs), compared to full year 2011 (1,225 deals, $170 billion).

“However, another 50 companies, with a combined deal value of around $6.0 billion are expected to list by the end of December,” it said.

This quarter, it says the US markets raised $7.3 billion (29 IPOs), narrowing the lead on the Asian markets, which raised $8.8 billion (59 IPOs).

It reports that the European exchanges also saw something of a return to form, with deal value reaching $7.0 billion (20 IPOs).

“Globally, year-on-year, the picture for Q4 remains somewhat depressed. The number of deals fell 46% from 255 deals in Q4 2011 to 136 deals in Q4 2012, whereas by capital raised, it only fell 6% from $29.1 billion in the same period last year to $27.3 billion this quarter,” it said.

By Emmanuel K. Dogbevi