IPO market 'holds up in uncertain conditions'

News Article - 08 January 2008
Category: Business

The Initial Public Offerings (IPO) markets are "healthy" despite the credit crisis and threats of recession, it has been claimed.

According to the latest IPO Watch Europe Survey by PricewaterhouseCoopers (PwC), there were 227 IPOs on European markets during the fourth quarter of 2007, compared to 288 the previous year.

Total offering value of IPOs during this period was €29,069 million (£21,587 million), a 17 per cent decrease on 2006 figures.

Lack of credit is leading a number of firms to look into equity, commented Richard Weaver, partner in the Capital Markets Group at PwC.

"Our view is that the IPO pipeline is still healthy," he said. "We expect to see a continuance of the trend of natural resources and energy companies from developing economies looking to IPO in 2008."

London led the way in the IPO market during the last three years, according to the survey, raising €9,349 million from 80 IPOs, although this is still a decrease on the previous year's figures of €15, 303 million from 134.

Ernst & Young has predicted that IPO activity will increase this year, estimating that an additional $18 billion (£9 billion) will be raised.

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