Cos raked in $65 bn globally through IPOs in Q2: E&Y

Global companies mopped up a whopping $65 billion through initial public offers (IPOs) during April-June, 2011, with firms from Asia accounting for 42% of the total capital raised, says a report.

According to a report by Ernst & Young, a total of 378 companies raised $64.6 billion through IPOs globally in the second quarter of the 2011 calendar year, up 39% vis-a-vis the previous quarter.

Geographically, Asian exchanges dominated listings this quarter, with 163 firms raising $27 billion via IPOs, translating into 42% of the total capital raised globally.

However, Asian IPOs' performance in the quarter under review was far short of the achievement in the third quarter of 2010, when Asian exchanges accounted for 81% of the capital raised globally through initial public offers.

The report did not mention any specific figure for India, but according to an estimate, Indian firms raked in a total of Rs 2,300 crore through 12 public issues during the period under review.

In contrast, European companies raised $17.7 billion through 95 public issues and 46 US firms raked in $13.8 billion through initial share sale programmes.

"Reflecting the huge pent-up demand for capital, we saw continued strength in Asian capital markets and a continued revival of IPOs across Europe and North America, led by IPO deals from the materials, industrials, energy and technology sectors," Ernst & Young Global Vice Chair (Strategic Growth Markets) Maria Pinelli said.

During the quarter, the largest global IPO was the $10 billion public issue of Swiss commodities trader, Glencore International, which listed on the London and Hong Kong stock exchanges.

The largest IPO on the Asian exchanges was the $2 billion listing of Italian luxury fashion retailer Prada on the Hong Kong Stock Exchange.

In the second quarter, the Hong Kong Stock Exchange raised $11.3 billion through 19 deals, while the Shanghai and Shenzhen Stock Exchanges (SME and ChiNext) collectively mopped up $10.3 billion through 77 deals.

Looking forward, the IPO method will remain at the heart of many companies' growth strategy despite the continued uncertainty of the global economic recovery.

"As the global IPO pipeline continues to build up, we expect a strong second half for new offerings from high profile issuers, notably from the US and Europe," Pinelli said.