The turmoil in the credit markets might have slowed the pace of M&A in the second half of 2007; however, it didn’t hinder IPO activity. The fourth quarter of 2007 saw 101 IPOs—the highest quarterly IPO volume in eight years—raise $20.4 billion. As predicted in our 2006 US IPO watch report, 2007 IPO activity exceeded that of 2006. There were 296 offerings that raised $65.1 billion in 2007 compared to 236 listings that raised $49.9 billion in the prior year. In fact, 2007 was the strongest IPO market we have seen since 2000 when 429 IPOs raised $92.6 billion.
The US IPO market is off to a sluggish start in 2008. Excluding the $17.9 billion Visa IPO, the largest US IPO in history, there were only 24 IPOs raising $6.0 billion in the first quarter of 2008 compared to 68 offerings raising $11.7 billion for the same period last year. Volatility in the equity markets is challenging deal execution. Both the debt and equity markets will be pursuing greater stability during 2008, which should fuel IPO activity.
