Disappointing IPO results of Facebook, Groupon discourage companies to go public
Singapore IPOs in Q212 down by 21%.
Results from Janus Corporate Solutions showed that only 96 companies went public from April to June compared to 122 during the first three months of the year.
According to Janus, a possible reason for this decline is the continued sluggishness of the global economy, as well as companies being wary of the disappointing results of several high-profile IPOs such as Facebook and Groupon.
Public limited companies set up in 2Q12 only consist around 1% of the total 14,481 business entities that were formed during the period.