Tags: IPO | US | Europe | investor

FT: An IPO Surge Is Under Way

Friday, 29 Mar 2013 07:51 AM

By John Morgan

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Initial public offerings (IPOs) in the United States are on the upswing, vaulting 36 percent in the first quarter of 2013, as confidence in the new issue market returned after years of disfavor, according to the Financial Times.

The growth in IPOs in Europe rose nearly 30 percent during the same period, despite the financial difficulties roiling the markets there.

In the United States, IPO funds raised totaled $7.8 billion versus $5.7 billion in the first quarter of 2012. In Europe, the total was $4.6 billion, compared with $3.5 billion.

Editor's Note:
How to Pay Zero Taxes . . . Legally

“The equity markets have a lot of momentum and the investor environment has been supportive,” Ina De, co-head of European equity at JPMorgan Chase, told the Times. “We see cash being put to work.”

Stock markets have risen in the face of the ongoing bond market interventions by central banks. The Times said IPO listings have generally enjoyed strong after-market performance as a result.

The top 10 largest deals in Europe and the United States are up an average of nearly 20 percent from their initial price, outperforming the FTSE All World Index, which is up 5 percent so far in 2013.

Renaissance Capital reported the average IPO in the United States alone has returned 16.3 percent from its offer price. The number of IPO filings year-to-date has been 34, a decline of 24.4 percent from last year.

There have been 10 IPOs in the financial sector, the most in any sector, followed by six in the healthcare sector, four in technology and three each in capital goods & services and energy, Renaissance Capital said.

MarketWatch called the current surge in new offerings a “renaissance.”

It said IPO volume for the last four weeks alone is up 59 percent from the same period last year to $2.93 billion, according to Dealogic.

Real estate and property offerings are currently the hottest new areas attracting IPO investor money, MarketWatch reported.

Editor's Note:
How to Pay Zero Taxes . . . Legally

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