The global initial public offer (IPO) activity dipped to a three-year low in January this year, with just 45 offers making their debut with volumes totalling $6.32 billion. |
In January 2005, IPO volumes were lower at $5.92 billion from 75 issues. The year-on-year IPO volumes in 2008 declined by 15.4 per cent from $7.46 billion mobilised in January 2007 from 65 issues. |
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The data compiled by Thomson Financial show that if not for India's Reliance Power IPO, which raised nearly $3 billion, the global IPO market should have experienced a more significant decline. |
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Surprisingly, China and the US did not reach billion-dollar proceeds in IPO mobilistation in January. |
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Both nations experienced huge declines in IPO proceeds "" China 72.6 per cent and the US 46.1 per cent. |
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India topped the table globally with mobilisation of $3.12 billion from four issues this year, while Saudi Arabia (with $1.23 billion for a solo issue), China ($706 million), the US ($690 million) and the UK ($170 million) ranked second, third, four and fifth, respectively. |
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India's share of the global primary market was 49.5 per cent, followed by Saudi Arabia (19.5 per cent), China (11.2 per cent), the US 10.9 per cent and the UK (2.7 per cent). |
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Lower IPO volumes were attributed to the meltdown of equity prices worldwide by over 20 per cent in the middle of January 2008. |
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The weakness in equity prices saw 21 global IPOs being withdrawn in January 2008, up from 16 withdrawn in December 2007. The withdrawn issues totalled $6.3 billion in proceeds, a three-fold increase from December 2007, when abandoned IPO proceeds were $2.1 billion. |
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Global equity and equity-related volumes reached $39.7 billion in January 2008, a 9 per cent decrease from the same period in 2007. |
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Large declines in follow-on offerings from $23.3 billion last year to $13.7 billion this year were offset by an 80 per cent increase in convertibles, or $7.2 billion, over January 2007. |
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The US equity and equity-related issuers accounted for 44.2 per cent of the issuance in January 2008, followed by China and India accounting for 12.7 per cent and 10.2 per cent respectively. |
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