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Our Bureau

New Delhi, July 3 Global IPO markets decelerated during the first quarter of 2008, triggered by the issues of credit crunch and financial turmoil. The persistent volatility and stringent valuations compelled 83 companies around the world to withdraw their IPOs in the first quarter of 2008 and 24 companies postponed their listings.

However, companies from emerging economies have been at the forefront in driving the growth of the IPO market with the BRIC (Brazil, Russia, India and China) countries raising a combined value of $13 billion through 47 deals, stated the Ernst & Young global IPO report.

In the first quarter of 2008, the Indian IPO market raised $4 billion through 16 deals. The share of Asia Pacific economies stood the highest at 60 per cent of the global IPO market. Europe, West Asia and Africa (EMEA region) bagged 26 per cent share, followed by North American markets at 14 per cent.

“In recent years, we notice a surge in IPO activity in emerging economies, especially the BRIC countries. Global investors with an appetite for risk have been shifting assets to fast-growing emerging markets where higher returns can be achieved. Soaring liquidity, flourishing local economies and rising consumer demand are among the many factors fuelling emerging markets growth,” said Mr R. Balachander, Partner & IPO Leader, Strategic Growth Markets, Ernst & Young, India.

The top-20 club IPOs raised $36.6 billion, accounting about 89 per cent of global funds raised in Q1 of the current fiscal.

During the first quarter of 2008, Asia-Pacific markets accounted for 50 per cent of the 20 largest IPOs.

Emerging markets represented eight out of the top ten IPOs and 13 out of the top 20 IPOs, said the E&Y report.

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