IPOs hit lowest level since 2008
Initial public offerings in 2012 slumped to the lowest level since the financial crisis as signs of an economic slowdown and Facebook's disappointing debut curbed demand and prompted companies to push back sales. With the uncertainty about possible federal spending cuts and tax increases weighing on the IPO market, the global backlog of potential offerings swelled to the largest year-end size since 2007. Pulling backAfter Facebook fell as much as 32 percent in the first three weeks after it began trading in May, companies including Party City Holdings and American International Group's airplane-leasing unit pulled planned offerings in favor of private sales. Unease on the part of companies and investors may give way to an increase in new-share sales as a possible rise in mergers and acquisitions leads to more fundraising for strategic takeovers, according to Alasdair Warren, co-head of investment banking in Europe at Goldman Sachs Group. Worldwide, the number of mergers and acquisitions in the fourth quarter rose to the highest level since 2008 as companies started to draw on cash piles totaling more than $3.5 trillion to make acquisitions. The quarterly proceeds were boosted by a combined $2.3 billion of oil and gas IPOs that Credit Suisse led, helping the bank surpass JPMorgan Chase & Co. for the year's biggest share of U.S. IPO underwriting for the first time since at least 1999. Reported by SFGate 2 hours ago.
Initial public offerings in 2012 slumped to the lowest level since the financial crisis as signs of an economic slowdown and Facebook's disappointing debut curbed demand and prompted companies to push back sales. With the uncertainty about possible federal spending cuts and tax increases weighing on the IPO market, the global backlog of potential offerings swelled to the largest year-end size since 2007. Pulling backAfter Facebook fell as much as 32 percent in the first three weeks after it began trading in May, companies including Party City Holdings and American International Group's airplane-leasing unit pulled planned offerings in favor of private sales. Unease on the part of companies and investors may give way to an increase in new-share sales as a possible rise in mergers and acquisitions leads to more fundraising for strategic takeovers, according to Alasdair Warren, co-head of investment banking in Europe at Goldman Sachs Group. Worldwide, the number of mergers and acquisitions in the fourth quarter rose to the highest level since 2008 as companies started to draw on cash piles totaling more than $3.5 trillion to make acquisitions. The quarterly proceeds were boosted by a combined $2.3 billion of oil and gas IPOs that Credit Suisse led, helping the bank surpass JPMorgan Chase & Co. for the year's biggest share of U.S. IPO underwriting for the first time since at least 1999. Reported by SFGate 2 hours ago.