In 2007, global IPO activity reached an all-time high of US$287 billion through 1,979 deals. Brazil, Russia, India and China (BRIC countries) accounted for 40% of the global IPO proceeds. In the first quarter of 2008, 236 global IPOs raised US$40.9 billion. While mature markets endure an IPO slowdown, many emerging markets continue to flourish, bolstered by vibrant economic growth. Eight of the quarter’s top 10 IPOs were companies based in the emerging markets.

Foreword:

Emerging markets continue to fuel global initial public offerings (IPOs) despite financial volatility triggered by the credit crunch. In 2007, with global IPO fund-raising at an all-time high, Brazil, Russia, India and China (BRIC countries) raised US$119 billion, over 40% of total global IPO proceeds. By contrast, a decade earlier, the US and Europe dominated IPO markets, and all the BRIC countries together produced US$6 billion or just 5% of total IPO proceeds. In the first quarter of 2008, financial turmoil sparked a deceleration in IPO markets around the world, especially in developed economies.

However, high-quality enterprises, primarily from the emerging markets, continue to be well received by the world’s public markets.

Today, capital follows a good investment story, wherever it’s listed. Global liquidity and thriving local economies have ignited rapid growth in the emerging markets. In their hunt for higher returns, investors with a risk appetite have been shifting assets to the fast-growth BRIC countries. It’s also getting easier to value and finance ideas outside the public markets, thanks to an expanding array of capital sources, including private equity, venture capital, hedge funds, private placements and sovereign wealth funds.

After extensive interviews with the world’s top investment bankers and stock exchange leaders, Ernst & Young’s Global IPO Trends Report 2008 reviews the major developments in the worldwide IPO markets in 2007 and the first quarter of 2008. As the fifth global IPO report produced by Ernst & Young, this review offers an in-depth examination of the key trends for companies planning an IPO today.

Trends in IPO activity can be difficult to predict, especially in times of market volatility. However, companies around the world continue to ready themselves to go public while waiting for market conditions to improve. We look forward to working with these companies and their teams in their transformation from a private entity to a public enterprise.

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Contents:
Perspectives on global IPO markets Global
Emerging markets drive global IPOs despite
financial volatility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Interviews:
David Erickson, Lehman Brothers . . . . . . . . . . . . . . . . . . . . .9
Noreen Culhane and Robin L Weiss, NYSE Euronext . . . . . . 11
Graphics:
Top 20 largest IPOs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
The rise of emerging markets . . . . . . . . . . . . . . . . . . . . . . . . . . 16

The Americas
The US
Financial, technology and foreign issuers
invigorate IPOs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Interviews:
Lisa Carnoy, Merrill Lynch. . . . . . . . . . . . . . . . . . . . . . . . . . 22
Cully Davis, Credit Suisse . . . . . . . . . . . . . . . . . . . . . . . . . . 25
John Jacobs, NASDAQ OMX . . . . . . . . . . . . . . . . . . . . . . . . 28
Brazil
IPO markets attain global prominence for
the first time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Interview:
Hans Lin, Merrill Lynch . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Asia-Pacific
China
Robust economic growth strengthens Greater China’s
dynamic IPO markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Interviews:
Henry Cai, UBS China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Gokul Laroia, Morgan Stanley . . . . . . . . . . . . . . . . . . . . . . . 41
Paul Chow, Hong Kong Exchange and Clearing Ltd. . . . . . . 43
India
Soaring liquidity and corporate profi ts
propel IPO markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Interview:
Dr. S. Subramanian, ENAM Securities Private Ltd. . . . . . . . 48
Australia
Numerous small mining companies continue
to tap public markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

EMEA
Europe
IPO markets remain resilient, sustained by
Russian/CIS companies and private equity . . . . . . . . . . . . . . . . 52
Interviews:
Jonathan Grussing, Credit Suisse . . . . . . . . . . . . . . . . . . . . 56
Ian Hannam, JP Morgan Chase . . . . . . . . . . . . . . . . . . . . . . 59
Tracey Pierce, London Stock Exchange . . . . . . . . . . . . . . . . 61
Russia/CIS
Record IPO markets decelerate due to
rising domestic challenges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Interview:
Natasha Tsukanova, JP Morgan . . . . . . . . . . . . . . . . . . . . . 66
The Middle East
Surging petrodollar liquidity and economic reforms
fuel IPO markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Interview:
Brad Bourland, Jadwa Investments. . . . . . . . . . . . . . . . . . . 71

Perspectives on IPO readiness
Companies have a choice in structuring an IPO . . . . . . . . . . . . 73
IFRS: the global financial reporting language . . . . . . . . . . . . . 76
Defi nition of an IPO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

Download Global IPO Trends Report 2008

PDF format, 1.5MB, 84Pages.

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About Ernst & Young’s IPO Offering

Ernst & Young thrives on helping companies to deliver successful initial public offerings (IPOs).

Our strategic growth markets professionals, who are dedicated to serving future market leaders worldwide, help businesses like yours evaluate the pros and cons of an IPO. We demystify the process, examine the alternatives and help prepare you for life in the public spotlight. On average, we help a company go public every business day of the year.

Our market-based insights and landmark IPO retreats, held in every major market worldwide, can help your business achieve its potential. It’s how Ernst & Young makes a difference.

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