At least 720 companies from all over the world have announced plans for the IPO market in the second quarter of 2011. According to data compiled by Bloomberg, the records began in the last quarter of 2007, when the company announced a total of 794 IPO listing.
The agency also notes that currently it may be not the best time to enter the market. In May stock indices were at 2008 highs, however they dropped amid the threat of Greek defauls and high inflation rate in China. Because of this, five biggest companies listed in the Hong Kong IPO market this year brought losses to investors: shares of the newbies fell after the debut.
Similar situation takes place on European markets. In 2011, 69 IPO were run in Western Europe and 36 companies on the market were trading below the IPO price.
Companies placing shares in the second quarter of 2011 are planning to raise a total of $67 bn through IPO transactions.
World’s biggest IPO since early 2011 was the one of Glencore. It managed to attract $10 bn in May via stock. Since late spring its shares lost 10%.
Among other major IPOs we should highlight the one of Yandex in the US. During the first trading day the shares of the Russian search engine gained 55%. Currently Yandex share is worth $32.5 while the initial price was $25.
It should be noted that recently on the Russian markets IPO forecasts have been reconsidered to the downside. Thus, in early June Alfa bank announced a decrease of the forecast for Russian emitters funds attraction from $35 bn to $20 bn.
