Global IPO activity strengthens with $256.5bn raised

Global Initial Public Offerings (IPO) activity has continued to strengthen. In 2014, 1,206 IPOs raised $256.5 billion, a 35 percent increase in volume and a 50 percent increase in value compared to 2013, according to the report: EY Global IPO Trends: 2014 Q4.
Although 2014 was the best year for IPOs since 2010 in terms of proceeds and volume, volatility on global stock markets in October meant fourth-quarter (Q4) 2014 failed to meet expectations, making 2014 a good, rather than a record-breaking year.
Financial sponsor-backed IPOs raised more capital than any year since 2011. Cross-border IPOs were more significant than at any time since 2007 – with US markets the favoured destination. Year 2015 will present a healthy but challenging IPO environment, according to the report.
Maria Pinelli, global vice chair, strategic growth markets, EY’s said: “2014 was a good year for global IPOs, but it fell short of being an epic one. The combination of low volatility for much of 2014, good corporate earnings growth and a lack of alternative investment options meant risk appetite focused on equities. IPOs performed very strongly, delivering on average a 17.1 percent return for the year, out-performing market indices by around 12.3 percent. 2014 was the best year for IPO performance since the financial crisis in 2007, even if IPO activity failed to reach pre-crisis heights in terms of deal number and capital raised due to a weaker-than-anticipated last quarter.”
Financial sponsors continued to play a dominant role in the global IPO market in 2014, as they took advantage of positive market sentiment, primarily in the US, mainland Europe and UK, to dispose of assets acquired in the peak of the economic cycle in 2006-07.
At $124.4 billion, proceeds raised via 328 financial-sponsored IPOs were up 86 percent on 2013 and accounted for nearly half (48%) of global IPOs by value and 27 percent by number – their best performance since 2001.