Filings for initial public offerings have reached their fastest quarterly pace since 2007 at a rough time for global markets, Bloomberg reports.
Even with Greece’s debt crisis and China’s rising inflation rates, Bloomberg data shows that at least 720 companies announced their plans to seek $67 billion in IPOs -- the largest quarterly number since 794 IPOs were announced in late 2007. On the year in the U.S., stocks have risen less than 3 percent following their IPO, Bloomberg reports.
In western Europe, new filings are at a three-year high, but almost two dozen deals have been withdrawn or pulled, also a recent high. These pulled sales would have taken in as much as $9.4 billion. Of the deals that have gone through, more than half are trading for less than their initial prices. In China, as inflation continues to rise, all but five of Hong Kong’s biggest IPOs have declined since their debut.
“Despite significant global activity, the market sentiment for deals now is tougher than what we’ve seen in a while,” Frank Maturo, co-head of Americas cash equity capital markets at Bank of America Corp., told Bloomberg. “We are not seeing the IPO performance that the buy side would like and that is making the IPO market more challenging.”