The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

The return of IPOs

Private equity exits, privatizations, and spin-offs will reinvigorate the IPO market this year, helping IPOs to account for a greater share of equity capital markets business. Deals may appear to be done faster but investors remain wary. The same can't be said for bankers when it comes to block trades. Peter Koh reports.

FOLLOWING THREE LEAN years, equity capital markets bankers today find it hard not to smile as they predict a massive increase in new equity issuance this year. The robust primary market recovery began in the fourth quarter of 2003. It looks set to continue. "Total issuance can only be higher than last year," says a European head of ECM. No-one doubts that. But the estimates for just how much higher vary between 15% and 50% in Europe.

The confirmed backlog for US issuers at the end of 2003 already showed 77 deals in the pipeline, expected to raise $12 billion, compared with 32 deals worth $4.4 billion at the end of 2002. In Europe the value expected from privatizations alone should top 2003's total IPO volume.

China's privatization programme, estimated to be worth $11 billion in 2004, is equivalent to nearly half the total IPO volume from Asia last year, when the region's $24.9 billion-worth of IPOs was greater than the rest of the world's combined. The numbers are certainly encouraging.

Volume won't be the only thing that changes in 2004. The business mix will alter too, with rights issues making way for a return of the IPO market.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree