IPO (initial public offering) volumes will pick-up further towards the end of the year, according to a new report by Ernst & Young (EY), with German and British companies leading the way as Europe's recovery gathers strength.
EY's "Global IPO trends" report found that world IPO activity fell in the third quarter of 2013, with 4 percent fewer deals compared with the same period last year. But it forecast that volumes would pick-up again in the fourth quarter, with between 200-250 listings taking place, generating proceeds of around $30-40 billion.
"Despite a comparatively quiet third quarter — in line with historical trends of slower activity over the summer months — global IPO activity is expected to lift through the remainder of the year and into 2014," Maria Pinelli, vice-chair of strategic growth markets, said in the EY report published on Wednesday.
"The uplift in activity will vary from region to region both in terms of timing and pace. The U.S. market is expected to continue its strong momentum and we expect stronger IPO activity from European exchanges, especially from U.K. and Germany, as well as from South East Asian exchanges."
Year-to-date, the U.S. has already surpassed its total number of IPOs for 2012, with the highest biotechnology and pharmaceutical volumes since 2007. This year's floats include Envision Healthcare Holdings, the largest debut of the third quarter, which raised $1.1 billion on the New York Stock Exchange.