3rd Quarter 2011 Global IPO Review
October 3, 2011
3Q Global Issuance Falls Precipitously As Volatility Spikes
A late summer lull combined with persistent market volatility led to a steep decline in global IPO activity in the 3Q11, making it the least active quarter of global issuance since the 3Q09. Deal flow slowed to a trickle by mid-August, with 72% of total proceeds raised during the first six weeks of the quarter. Many IPOs were put on hold as companies elected to wait out market turbulence. This included several large deals, which led to a meaningful 14% decline in average deal size from the 2Q11. Global IPO performance turned negative for the 3Q11 (-4%) as the markets struggled through the ongoing European debt crisis and a weak US economy. However, the global IPO pipeline grew to record proportions and now contains 336 private companies that are expected to raise nearly $180 billion.
Key takeaways:
- 59 global IPOs raise $23 billion in the 3Q11, down 49% year-over-year
- Global returns declined to -4% due to macroeconomic headwinds
- 18 US IPOs raise $3.5 billion, down 33% year-over-year
- Consumer and technology IPOs dominate US performance
- Global IPO pipeline continues to build, with 336 companies hoping to raise $180 billion
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