The value of withdrawn and delayed IPOs so far this year rose to $34 billion, approaching the $40 billion pulled in 2010, the most since Bloomberg began compiling data. Siemens AG suspended an IPO of its Osram lighting unit, while US defence equipment maker ADS Tactical and Shanghai-based Xiao Nan Guo Restaurants Holdings abandoned offerings.
The pace of IPOs slowed as equity markets fell to the lowest level in more than a year and stock volatility surged in August to the highest since 2009. In the US, delays helped create the biggest backlog of IPOs since at least 2006, with 154 deals as of September 20, according to Ipreo Holdings.
Issuers have learned to be more patient while looking for the right windows, said Tim Harvey-Samuel, Citigroups London-based head of equity capital markets for Europe, the West Asia and Africa. Companies completed IPOs valued at $30 billion from the start of July through Wednesday, less than half the amount in the previous quarter, according to Bloomberg data. That means funds generated from IPOs this quarter will be the least in more than two years.
Theres no question that what has happened to the class of 2011 has impacted sentiment toward investing in IPOs, said Mark Hantho, New York-based global co-head of equity capital markets at Deutsche Bank AG.
There were 366 companies planning IPOs around the world as of September 20, double the number on file after the MSCI World Index reached a 13-year low in 2009, according to Ipreo, a capital markets data firm.
Because stocks have been marked down by a fair number of selloffs lately, the valuations at which investors are willing to accept new issues have come down, said Dan Cummings, head of global equity capital markets at Bank of America.
Offerings in Asia provided some relief, accounting for half of funds raised globally, Bloomberg data show. Appetite for new shares in Asia got a boost from Chinas economy, projected to grow twice as fast as the world as a whole in 2012, said Josef Schuster, founder of Chicago-based IPOX Schuster.
In western Europe, at least 24 new stock sales were postponed or cancelled this year, almost twice as many as a year earlier.
While the volume of IPOs completed in Europe, the Middle East and Africa this year has risen to $37 billion.