The IPO market is not as robust as it was at this time last year. So far in 2006, in fact, the number of initial public offerings priced has dropped 10 per cent, according to marketwatch.com.
There have been 137 initial public offerings priced this year, generating proceeds of $26.3 billion, according to the website, which cited data from Dealogic. During the same period of 2005, 153 IPOs were priced, spawning proceeds of $28.3 billion.
Further, 42 IPOs have been withdrawn or postponed this year. That’s a 17 percent rise compared to this time in 2005, when 36 deals had been withdrawn or postponed.
Rising interest rates, the extremely volatile stock market over the past three months, and global political turmoil may have all contributed to the decline.
What’s more, the disastrous Vonage IPO earlier this year seems to have led moved many tech firms to either pull their offerings or heavily discount them.