Global float values take a 95% tumble
The value of stock-market flotations worldwide crashed by more than 95% to $1.4 billion (£953 million) in the first quarter of 2009 from $41.2 billion in the same period a year earlier.
Ernst & Young's Global IPO update today revealed how the world economy has juddered to a halt, with only 50 initial public offerings on stock markets between 1 January and 31 March.
Just three IPOs accounted for 75% of the capital raised from stock-market debuts in the first quarter of 2009, with the biggest by far being the $828 million flotation of MeadJohnson Nutrition. Much of the smaller-scale IPO activity is in Asia and eastern Europe.
Data from Dealogic shows 37 IPOs have been postponed or withdrawn in the past quarter. In the same period in 2008, there were 251 IPOs.
Gil Forer, global director of IPO initiatives at Ernst & Young, said: "The first-quarter results show that the global financial crisis has had a deep impact on the IPO market and the time frame for recovery will be much longer than people initially thought."
