Total volume and proceeds raised in the 2012 IPO market increased over 2011, despite the slowdown in activity during the fourth quarter, according to IPO Watch, a quarterly and annual survey of IPOs listed on US stock exchanges by PwC US.
Following a strong performance in October, the market pulled back as companies waited for clarity on US fiscal policy.
For the full year, the IPO market saw 138 companies completing their IPOs as of 13 December, 2012, raising total proceeds of USD40.7bn, compared with 134 companies that had completed their IPOs for all of 2011 raising USD35.5bn, according to the survey.
Although the 2012 volume of IPOs surpassed 2011, the value raised – when excluding the USD16.0bn Facebook IPO – was only USD24.7bn, which was a 30 per cent decrease in proceeds raised. The current year lacked the large number of billion dollar plus IPOs in 2011, and saw the average IPO size in 2012 decrease to USD180m when excluding Facebook, which was a reduction of 32 per cent from the average IPO in 2011 of USD265m.
The IPO market began robustly in the fourth quarter, with October IPO volume equalling that of March – both months were the highest of the year with 21 IPOs. IPO proceeds during October reached the second-highest monthly level of the year, after May, which included the Facebook IPO. IPO activity began to retreat in November as investors turned their attention to the Presidential election and fiscal outlook.
There were 33 US IPOs in the fourth quarter of 2012, surpassing the 29 IPOs in the third quarter of 2012, and 28 IPOs in the fourth quarter of 2011. Total proceeds raised in the fourth quarter were USD6.3bn, down five per cent from USD6.6bn the third quarter of 2012, and down three per cent from USD6.4bn in proceeds in the corresponding quarter in 2011.
