Companies worldwide raise $64b from IPO in second quarter 2011 – Ernst & Young

Initial Public Offerings (IPO) that were made by companies on the various stock exchanges across the world in the second quarter of 2011 were able to raise an amount of $64.6 billion, Ernst & Young (E&Y) says.

According to E&Y, the quarter recorded 378 IPOs globally and an increase of 39% compared to the first quarter of 2011.

“Global IPO fundraising activity rose by 39% in the second quarter compared to the first quarter of 2011 and increased by 38% compared to the second quarter of 2010…In 2011 second quarter, 378 IPOs globally raised a total of $64.6 billion,” E&Y’s 2011 Global IPO update reflected.

The firm said, Asian exchanges still dominated the listings this quarter with 163 IPOs raising $27 billion constituting 42% of the global capital raised.

However, E&Y indicates that “Asia’s current lead now falls far short of its dominance in third quarter 2010 when Asian exchanges made up 81% of global capital raised.”

It added, the Hong Kong Stock Exchange during the quarter raised $11.3 billion in 19 deals, while the Shanghai and Shenzhen Stock Exchanges raised $10.3 billion in 77 deals altogether.

“The largest IPO on Asian exchanges in Q2 was the $2 billion listing of Italy’s luxury fashion retailer Prada on the Hong Kong Stock Exchange”, E&Y said.

European exchanges raised a capital of $17.7 billion with 95 IPOs, a 27% share of the global capital raised.

The U.S. recorded 46 IPOs with $13.8 billion capital raised.

The top three sectors globally were the materials, industrials and energy accounting for 45% of IPOs total value, it said.

The Global Vice Chair for Strategic Growth Markets at Ernst & Young, Maria Pinelli, said “As the global IPO pipeline continues to build up, we expect a strong second half for new offerings from high profile issuers, notably from the US and Europe.”

By Ekow Quandzie