Global IPOs dip to three-year low
Mumbai: The global initial public offer (IPO) activity was seen moving in a downward curve in January this year, suffering a three-year low with just 45 offers making their debut with volumes totaling $6.32 billion. The meltdown of equity prices worldwide by over 20 percent in the middle of January 2008 reportedly caused lowering of the IPO volumes. In January 2005, IPO volumes were lower at $5.92 billion from 75 issues. The year-on-year IPO volumes in 2008 declined by 15.4 percent from $7.46 billion mobilized in January 2007 from 65 issues. The data compiled by Thomson Financial show that though the global IPO market in general has experienced a significant decline, India's Reliance Power IPO raised nearly $3 billion. Surprisingly, China and the U.S. did not reach billion dollar proceeds in IPO mobilization in January. Both nations experienced huge declines - China 72.6 percent and the U.S. 46.1 percent. This year, while India topped the table globally with mobilization of $3.12 billion from four issues, Saudi Arabia (with $1.23 billion for a solo issue), China ($706 million), the U.S. ($690 million) and the UK ($170 million) ranked second, third, four and fifth, respectively. India?s share of the global primary market was 49.5 percent, followed by Saudi Arabia (19.5 percent), China (11.2 percent), the U.S. 10.9 percent and the UK (2.7 percent). The weakness in equity prices caused wthdrawal of 21 global IPOs in January 2008, up from 16 withdrawn in December 2007. The withdrawn issues totaled $6.3 billion in proceeds, a three-fold increase from December 2007, when abandoned IPO proceeds were $2.1 billion.