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7th October 2011

Global IPO value down 46% on year ago

The latest Ernst & Young global IPO activity report shows IPOs in Q3 down 26% by number and 57% by value compared with Q2 and 6% by number and 46% by value compared with the year ago period. There were just three IPOs during the quarter with a value in excess of $1bn and the average deal size fell from $171m in Q2 to $100m in Q3 according to Dealogic data. 49 IPO scheduled for Q3 were withdrawn with a further 22 postponed.

138 out of the 284 (49%) deals in Q3 took place in Asia and they accounted for 47% of the IPO funds raised globally. However even in this region the numbers are falling and this is the lowest amount raised in the region since Q2 2009.

Maria Pinelli, Global Strategic Growth Markets Leader at Ernst & Young comments: "The third quarter results show that the Eurozone and US debt crisis have had a deep impact on the IPO market and on both issuers and investors' confidence. There are, however, many very good businesses still waiting to go public. Companies have not stopped seeing IPOs as a way of raising capital. They are waiting for markets conditions to improve, while continuing to prepare for their IPO.