Global IPO activity soar in 2006

LONDON –– Global IPO activity soared to a record high in 2006 according to figures this week by Ernst & Young. From January through November 2006 US$227 billion was raised in 1,559 IPOs - a significant increase on the US$167 billion raised in the whole of 2005.

As in 2005, the increase in capital raised was led by large deals, and 2006 saw the biggest IPO ever with the listing of ICBC in Hong Kong and Shanghai exchanges, raising almost US$22 billion alone. In second and third place came the IPOs for Bank of China Ltd and Rosneft with each raising more than US$10 billion, beating last year’s most significant IPO for China Construction Bank. Four out of the top 10, and six out of the top 20, deals were from emerging markets. All top 20 deals raised more than US$1.3 billion each. “The capital markets continued to globalize in 2006,” said Gregory K. Ericksen, Ernst & Young’s Global Vice Chair Strategic Growth Markets in a statement issued by the company. “We’ve seen an increase in cross-border listings and stronger competition between exchanges, creating more options than ever for both investors and companies looking to go public.” HKSE came out number one with 17% of the total capital raised worldwide. In second place with 15% was LSE, as London emerged as a hub for foreign transactions on both the main board and the Alternative Investment Market (AIM).