For the first half of 2011 the global amount of funds raised through initial public offering, was 111Bn USD 18% higher than for the same period of the previous year. Generally the entire equity shares market is 412Bn USD which is not only 27% higher than for the same period during the previous year but also the record amount since 2007.

Developing countries, which have been leaders of the IPO for the past two years, attracted only 46.6 Bn USD through initial public offering in January-June 2011, i.e. 42% of the total amount. Year ago however their share of global IPO was 52%. The main causes of such situation are low interest rates, supported by the governments of the developed countries, and due to the program for support of liquidity in the markets, implemented by the U.S.

Such opinions are supported by the fact that largest increase in IPOs occured in the U.S., where companies raised 25Bn USD which is a 192% increase over last year. In the EMEA region (Europe, Middle East, Asia) largest issuers were the developed countries. For instance British companies raised 14.6Bn USD even though the major part of these funds are traced to the Swiss commodities trader Glencore, that had its IPO on LSE in May and attracted a 10 Bn USD.  Hong Kong this time lost to London and took second place with a volume of IPO only 3.6Bn USD worth.

UkrAgroConsult