Global initial public offering (IPO) activity reached record levels in 2007, with capital raised at an all-time high and the number of companies choosing to go public in the first eleven months of 2007, according to figures released on Wednesday by Ernst & Young.

From January through November 2007, $255 billion was raised globally through 1739 IPOs — compared to $246 billion raised in 1729 deals in the whole of 2006.  Preliminary data for the first two weeks of December 2007 indicates a further  $18 billion raised in 91 IPOs. The strength of India’s economy, stock market and corporate profits  have fuelled IPOs in 2007 with India’s markets raising $8.3 billion, through 95 IPOs in 2007, as compared to $7.23 billion, through 78 IPOs in 2006.

R Balachander, IPO Leader, Strategic Growth Markets, Ernst & Young-India said, “In recent years we notice a surge in IPO activity in emerging economies, especially the BRIC countries — 14 of the top 20 IPOs were from emerging markets."

Leading the way

China led the race yet again with most capital raised at $54.4 billion through 227 deals. This record level of activity has been achieved despite the absence in 2007 of the mega-deals seen in past years. The largest IPO of 2007 to date was Russia’s VTB Bank, which raised $8 billion.

By industry, financial companies continued to dominate globally, representing one-quarter of all funds raised. In India the real estate and power sectors saw heightened activity. Brazil, Russia, India and China (BRIC countries) have raised $106.5 billion in 382 deals so far this year, as against $89.6 billion raised in 302 deals in the same period of 2006.  Asia-Pacific accounted for 46 per cent of IPOs worldwide, ahead of Europe, the Middle East, and Africa (EMEA) with 35 per cent and North America with 14 per cent.