Monday 30th June 2008: The global credit crunch and the shockwaves it sent through equity markets led to a sharp decline in IPO activity in the financial year just ended, particularly in the second half of the year, according to preliminary 07-08 figures released by Deloitte.

In total, 90% of all funds raised and 75% of all IPOs occurred in the first half of the year.

Preliminary figures released from Deloitte Corporate Finance’s Annual IPO Report for 07-08 found 199 IPOs listed in the year to 30 June 08, down from a record 221 in the previous year. The total value of funds raised from IPO investors almost halved from $10.5 billion in 2006-07 to $5.9 billion in 07-08.

But the biggest change in the year just ended was the drop in average returns. IPO investors experienced an average loss of 3% in 2007-08, compared to a gain of 91% in 06-07.

Notably there were only 16 floats in the June quarter compared to 75 in the previous year.  

Steve Woosnam
Deloitte
Corporate Finance Partner
Tel: +61 (0) 2 9322 7531

Tony Garrett
Deloitte
Corporate Finance Partner
Tel: +61 (0) 2 9322 5491