IPOs raised $27b in Asia

This amounts to 42% of global capital raised.

Global IPO fundraising activity rose by 39% in the second quarter compared to the first quarter of 2011 and increased by 38% compared to the second quarter of 2010, according to Ernst & Young’s Q2 2011 Global IPO update.

In Q2 2011, 378 IPOs globally raised a total of US$64.6b. Asian exchanges still dominated listings this quarter, with 163 IPOs raising US$27b and 42% of global capital raised, followed by European with 27%, and North American exchanges with 24%. However, Asia’s current lead now falls far short of its dominance in Q3 2010 when Asian exchanges made up 81% of global capital raised. The top three sectors globally were the materials, industrials and energy accounting for 45% of IPOs total value.

“Reflecting the huge pent-up demand for capital, we saw continued strength in Asian capital markets and continued revival of IPOs across Europe and North America, led by IPO deals from the materials, industrials, energy and technology sectors,” says Max Loh, Country Managing Partner, Ernst & Young LLP.

Asia sustains lead but is losing momentum Asian exchanges still leads the world in IPOs, but lost some of its previous dominance in Q2.

Asian exchanges completed 163 deals which raised US$27b, an 11% increase in capital raised
compared to Q2’10. The largest IPO on Asian exchanges in Q2 was the US$2b listing of Italy’s luxury fashion retailer Prada on the Hong Kong Stock Exchange.

The Hong Kong Stock Exchange in Q2 raised US$11.3b in 19 deals, while the Shanghai and Shenzhen Stock Exchanges raised US$10.3b in 77 deals altogether.

Max Loh says: “Chinese IPO activity has slowed down, with investors restrained by Chinese inflationary concerns over commodity prices and housing prices. Even so, the Chinese IPO pipeline is still very strong, containing large state-owned enterprises, and mid-cap companies.”