Europe and Asia eclipsed North America this year in the value of initial public stock offerings thanks to activity in emerging market countries, a study from Ernst and Young revealed last week. It found that 1,559 companies have been quoted on stock exchanges since the start of the year, raising $227 billion against $167 billion in 2005.
The three largest companies introduced on exchanges this year were from China, the banking groups ICBC and the Bank of China, and Russia, the oil group Rosneft. The ICBC raised $21.9 billion, the Bank of China $11.2 billion and Rosneft 10.7 billion.
Six of the top 20 initial public offerings this year were from emerging market countries. Europe, Africa and the Middle East accounted for 42% of the capital raised, followed by Asia, 34%, and North America, 20%.
The study showed that the New York Stock Exchange and the Nasdaq market accounted for only 17% of the initial offerings this year.
By contrast the London Stock Exchange, which Nasdaq is trying to acquire, by itself captured 15% of the capital raised. The LSE was able to attract many companies from China, India and Russia.
Copyright Agence France-Presse, 2006