The Hindu Business Line : India, China, Brazil leading primary markets recovery: E&Y

Mumbai, Nov. 8 India, China and Brazil are likely to lead the recovery of global IPO markets, says a recent Ernst and Young survey – Institutional Investor IPO. The survey said that the IPO market recovery in these countries could have started as early as in Q3-Q4 2009.

“IPO activity in the last two quarters confirms that some IPO markets are making an early recovery, notably in the emerging economies of India, China and Brazil,” said R. Balachander, Partner and IPO Leader, Ernst & Young. “A stable Government and booming Sensex has led to the revival of IPO activity (in India). There was pent-up demand for capital, and Indian corporates were quick to realise that investors were looking for fresh avenues to deploy funds. All this augured well for the capital markets and the first signs of revival were visible in the series of successful QIPs. IPOs followed soon thereafter.”

The US, Singapore and Mexico are expected to see recovery only between Q1 of 2010 and Q2 of 2011, said the survey.

“As the markets bounced back here, we are seeing that a number of companies are once again preparing for listing. More than a dozen IPOs have happened in the last few months, most of them successful in terms of subscriptions, though we have not seen frenzied response from retail investors, as was the case in 2007 and early 2008,” said Mr Balachander.

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