Asian IPO activity plummeted by 47% in 2Q12 yoy

Globally, Facebook’s US$16.0 billion IPO made up 38% of this quarter’s total, boosting the activity to a 49% high.

In a release by Ernst & Young, this was an 87% increase compared to the previous quarter (US$7.8 billion via 96 deals) but a 47% decline compared to Q2 2011 (US$27.7 billion via 165 deals). The largest Asian IPOs this quarter were the US$3.1 billion listing of Malaysia’s palm oil producer, Felda Global Ventures Holdings Bhd on Bursa Malaysia and China’s Haitong Securities Co Ltd (US$1.8 billion) on the HKEx. Out of the top 20 global IPOs this quarter, eight were listed on the Asian stock exchanges.

Here's more from Ernst & Young:

Global IPO activity saw an improvement in Q2 2012, according to Ernst & Young’s Global IPO update. So far this quarter, a total of 206 deals has raised US$41.8 billion, an increase of 5% by deal numbers and 141% higher by capital raised compared to Q1 2012 (US$17.4 billion via 196 deals). However, this quarter was 46% lower by number of deals and 36% lower by capital raised than in Q2 2011 (US$65.6 billion via 383 deals). The latter was, however, the highest second quarter since Q2 2007.

This quarter, the overall capital raised was boosted by Facebook’s US$16.0 billion IPO, which made up 38% of this quarter’s total. Even without this IPO, the overall global IPO activity in Q2 2012 (US$25.8 billion) was 49% higher by capital raised compared to Q1 2012.

Dilys Chau, Assurance Partner at Ernst & Young comments: “The second quarter results show relative optimism for capital-raising. However, this optimism is in certain markets and capital market activity continues to be hampered by lack of investor confidence and economic uncertainty. Balanced monetary policy in the developed and emerging economies will be important for investor and issuers’ confidence to return.”