There were only five initial public offerings (IPOs) in the US market in the third quarter, with no IPO activity after early August. With global stock markets falling sharply in early October, a fourth-quarter rebound in IPOs appeared unlikely. Banks seeking to raise additional capital to offset rising loan losses or to fund acquisitions bolstered equity capital market volume, despite the dearth of IPOs. Despite the decline in global issuance, the Saudi Arabian market experienced a 162% increase in equity issuance in the first nine months of 2008 compared to the same period a year earlier. While the emerging markets hosted nine of the 10 largest IPOs in the third quarter, year-over-year activity still declined sharply.
Companies Cancel IPOs As Markets Tumble Gordon Platt Global Finance; Nov 2008; 22, 10; Docstoc pg. 66 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
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