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Global initial public offering (IPO) activity reached record highs last year, despite the troubles in the West. According to figures released by Ernst & Young, the number and value of flotations taking place between January and November 2007 reached 1,739 and $255 billion (£129 billion) respectively, compared to 1,729 and $246 billion for all of 2006.

In terms of numbers, 382 IPOs were completed by BRIC nations – Brazil, Russia, India and China – raising $106.5 billion (£54 billion) of the total and accounting for the majority of the largest deals of the year – 14 of the top 20. China completed 209 IPOs, 36 more than the combined total recorded by fellow BRIC nations, Russia, Brazil and India.

Gil Forer, global director of IPO initiatives at Ernst & Young explained: “The increased activity across the emerging markets stems from the growth of their economies and the ongoing globalisation of the capital markets. This has seen the rise of new world-class financial centres, investors looking further afield for investment opportunities, and the continuing trend of companies looking to list on domestic exchanges – almost all of the top 20 IPOs in 2007 went public in their home countries.”

With tightening credit conditions, there is speculation surrounding the possible fallout of several large leveraged buy-outs – all of which could affect IPO levels. But Forer remains upbeat. “Despite the ongoing uncertainty, the pipeline of IPO-ready companies looking to list in 2008 looks healthy, especially across the emerging markets.”

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