With Facebook considering the largest internet IPO on record and regulatory filings showing that at least 14 other Web-related companies are planning sales, the industry may raise $11 billion next year, according to data compiled by Bloomberg. That would be the most since $18.5 billion of IPOs in 1999, just before the dotcom bubble burst.
While surging sales growth may lure investors to Facebook, the biggest social-networking site, heightened stock volatility and Europes sovereign-debt crisis could temper the pace of global IPOs after a 38% decline in 2011. Even internet companies may cut valuations for their offerings after Zynga, the largest developer of games for Facebook, and online-radio company Pandora slumped following share sales this year, according to researcher Morningstar.
IPOs raised $155.8 billion in 2011, compared with $252 billion a year earlier, and U.S. initial offerings generated $38.8 billion, about 10 percent less than in 2010, Bloomberg data show. In Asia , IPOs this year have raised $79.2 billion, less than half the $176.5 billion last year, Bloomberg data show.
While funds raised in Europe rose for the year, they sank more than 95 percent since August from a year earlier after the worsening debt crisis and a cut to the U.S. credit rating sapped confidence in global markets.