According to Ernst & Young’s Global IPO Survey 2004, the UK saw 63 initial public offerings on the London Stock Exchange and AIM during 2003, 40 of which were during the last quarter. In the first quarter of 2004, there were 32 IPOs, indicating that investor appetite for new issues was holding up, but remained selective.
Meanwhile, the demand for new issues in Europe seems a lot more fragile, with six in Greece and four in France during the first quarter of 2004.
On a worldwide basis, early indicators point to the continued emergence of the global IPO market. During the last quarter of 2003 and the first quarter of 2004, a total of 639 worldwide IPOs raised $53bn, compared to $23bn raised in 332 deals during the first two quarters of 2003.
The study blamed the outbreak of Sars in Asia, and the Iraq war for hindering IPO activity in the first half of last year.
Ernst & Young predicts that if the current global deal flow maintains its momentum, 2004 activity could match 1998 levels when $118bn was raised from nearly 1,100 deals.
Asia saw the strongest growth in 2003. China was responsible for the lion’s share of the IPOs ($12.4bn raised by 94 IPOs) thanks to a solid economy that has been growing by nearly double-digits for a decade. With half a dozen Chinese companies heading for flotation this year, 2004 could be another hot year for IPOs in Asia, the survey predicted.
