The amount raised globally from initial public offerings (IPOs) in 2010 is on track to beat any other year on record, according to Ernst & Young, despite waves of market volatility which disrupted many planned listings.
Fueled by a booming Asian market -- which has accounted for 64 percent of total IPO values -- listings raised $255.3 billion in the first 11 months of 2010, and by year-end are expected to top the 2007 peak of $295 billion, the accountancy group said.
Benefiting from relatively low interest rates in developed markets and abundant liquidity, global investors in the last 11 months have been avidly seeking exposure to the growth in Asia and other emerging markets, said Gregory Ericksen, global vice chair for strategic growth markets at Ernst & Young.
Asian insurance companies and banks drove global IPO markets, he added, while a focus by emerging market governments on modernising infrastructure also provided support for activity in the industrial and materials sectors.
China, boosted by investor demand for its high growth companies, dominated issuance, contributing almost half the total raised globally.
Despite volatile markets which have seen billions of dollars worth of IPOs pulled this year, Europe still saw a more than 500 percent increase on the amount of IPO funds raised versus the same period in 2009.
The three months to December, which has already seen $102.8 billion raised from 294 deals, are expected to see the highest quarterly global IPO value on record, beating the $104.8 billion achieved in the final quarter of 2007.
Although a renewed wave of market uncertainty, brought on by the Irish debt crisis, has knocked some recent listings off track, the general wider pick up in IPO market activity is expected to continue.
New IPO filings continue to increase around the world and a large backlog has built up as companies await greater macroeconomic stability, said Ericksen. We expect the current IPO momentum to continue its upward trend in 2011.
(Editing by Jon Loades-Carter)