Feeling like you've seen a lot of IPOs lately? Global filings for initial public offerings are accelerating to the fastest pace since 2007, according to data compiled by Bloomberg. At least 720 companies, such as Groupon Inc., have announced plans this quarter to seek $67-billion (U.S.) by going public.
A buoyant IPO market means all is well with the capital markets and investors are feeling optimistic. Right? Consider this, then:
- In the U.S. this year, stocks have risen less than 3 percent on average following an IPO.
- More than half of this year's 43 U.S. IPO withdrawals or postponements have occurred since the beginning of April.
- More European deals have been pulled this year than since at least 2006.
- Of the 69 IPOs that were completed in Europe this year, 36 trade below their initial prices.
- Glencore International Plc has lost about 10 percent since raising $10-billion in its IPO in London and Hong Kong in May, the biggest initial share sale in the world this year.
- All but five of the biggest IPOs in Hong Kong have declined since their debut.