Global IPO activity in the first quarter of 2010 showed substantial improvement over 1Q 2009, according to Ernst & Young’s 1Q 2010 Global IPO update. The results were driven by an ongoing robust Asian market and the revival of European listings.

In Q1 2010 there were 267 deals globally worth US$53.2 billion ($74.2 billion), compared to the 52 deals which raised US$1.4 billion in 1Q09 (which had the lowest IPO activity in the past decade). Asia continued to experience significant IPO activity in the quarter, with 166 IPOs raising US$35.1 billion, this constitute 62% of the quarter’s deal numbers and 66% of the quarter’s total IPO fund raising. Nine of the twenty largest IPOs were from Asia (China, Japan and South Korea).

The largest IPO in 1Q was Dai-ichi Life Insurance Co Ltd, which listed on Tokyo Stock Exchange in March at US$11 billion. This is the biggest IPO since the US$19.7 billion Visa IPO in March 2008 and the largest Japanese IPO since NTT DoCoMo’s listing in 1998. China continued to lead global activity with 109 deals (accounting for over 41% of total deals globally), and raising US$19.4 billion (37% of global fund raised). In 1Q, India completed 20 IPOs listing on Bombay Stock Exchange which raised US$1.2 billion and Brazil conducted 5 IPOs which raised US$3.3 billion locally on the Bovespa.

Despite the postponement of a number of high profile listings in January, European investors’ confidence returned later in the quarter with three major deals raising more than US$900 million each. These large deals contributed significantly to total funds raised of US$8 billion, up 708% on 1Q 2009 and up 21% on 4Q 2009. Across Europe, there were 39 IPOs, the highest number since 2Q 2008. Although US firms raised capital with a total value of US$4.2 billion and 25 deals, both figures represented a decline on 4Q 2009.

IPOs by sectors
The leading sectors by funds raised were from the Financial sector (insurance, brokerages and banks) which raised US$16.4 billion (in 16 IPOs). The Materials sector (metals & mining; chemicals; construction materials; containers and packaging; paper and forest products) which raised US$10.2 billion and the Industrials sector (automobiles and components; building/construction and engineering; construction materials; machinery and other industrials; transportation and infrastructure) which raised US$7.9 billion.

The leading sectors by number of deals were from the Materials sector (53 deals), Industrials sector (51 deals) and High Tech sector (electronics, semiconductor, software, IT consulting and services) (38 deals).