Slowing growth in China coupled with the continuation of the European sovereign debt crisis dampened global IPO issuance in 3Q12. IPO proceeds continue to remain below average historical levels, declining 10% in 3Q12 and IPO activity dropped substantially, falling 42%, year-over-year. Driven by the Japan Airlines’ huge IPO, Asia topped the rest of the world, accounting for 70% of proceeds raised this quarter. Global IPO returns improved in the 3Q12, up over 12% on average, helped by US IPOs, which benefited from investor interest in smaller deals in the consumer and technology sectors. Despite the muted third quarter activity, solid IPO performance and a robust global IPO pipeline should set the stage for a strong 2013.

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