The Wall Street Journal is reporting the significant drop in Europe’s IPO so far this year. Compared to a year ago, the value of IPOs have fallen a massive 95% to €456 million or $637.4 million this quarter compared to last year’s €9.17 billion or $12.82bn. Based on a study released by PwC, this market is not likely to recover until the Q2 of next year. The figure for Q2 was based on 28 new listings versus last year’s 133.
Based on its quarterly review of IPO activity in Europe, business-advisory firm PricewaterhouseCoopers LLP said that IPOs “continued to suffer from the global loss of confidence in the capital markets.” It said investors were also pressured to put their money into listed companies that resorted to secondary offerings and rights issues to strengthen their balance sheets amid the global financial crisis.
Read the rest HERE.