Crises expectancy: major companies delay their ipos
2011-07-19 16:43:36
The main signaling factors of economic crises are the high debt levels and decline in asset prices. Aside the issues with Balance of Payments for various countries, private sector debt is also of a great concern.
Ireland, for once prior to crisis had low national debt and positive balance of payments, yet large private sector debt which triggered the crises. Such situation is seen today in many large economies. With that being said, investors are really hesitant to finance new companies, as high volatility within the financial markets contributes to defensive position and lack of responsiveness from the investors.
Many large companies had no choice but to postpone their IPO’s for later periods. These IPOs have already created logjam in Europe, when JP Morgan experts predict 30Bn USD volume of IPOs that are currently waiting for more favorable conditions. Amongst those companies are ViOil, Valinor, Astraea Capital, airport “Domodedovo”, “Evroset’” and many others.