US IPO volume in '09 at $17 bn, 2nd lowest total on record

The volume of initial public offer (IPO) in the US in 2009 amounted to $16.6 billion, the second lowest on record, amid uncertainties in the financial sector worldwide.

"IPO volume was the second lowest annual total on record with a mere $16.6 billion raised via 49 deals in 2009, representing a drop of 47 per cent from the $31.1 billion seen in 2008," global deal tracking firm Dealogic said.

The lowest ever IPO volume recorded so far was in 2003, when $14.5 billion was raised through 83 deals.

There was an overall bearishness in the primary market, the volume of IPOs increased in each quarter of the year 2009.

According to Dealogic, in the fourth quarter of 2009, $9.1 billion was raised, up 77 per cent from the third quarter and over 10 times higher than the $828 million seen in the first quarter of 2009.

As per the backlog in US equity capital market, 85 deals are in pipeline, slated to raise $16.3 billion, against $12.1 billion through 53 deals at the start of 2009.

"The IPO backlog stands at $15.7 billion via 66 deals, including 13 in technology sector for up to $2.4 billion, and 15 in real estate space slated to raise $5.4 billion.

The year 2010, however, looks promising as in the first four days of this year there were two IPOs worth $200.64 million and one FPO of $555.08 million. In January 1-4, 2009, there was only one IPO worth $8.94 million and three FPOs worth $36.35 million, it said.