2008 the year of the sinking float
Financial planning dealer groups have not been the only entities hitting the wall when it comes to floating on the Australian Securities Exchange, according to the latest research released by Deloitte.
The Deloitte IPO (Initial Public Offering) Report has revealed activity dived this year, with just 75 IPOs expected to list by the time 2008 draws to a close — down 71 per cent from 2007.
It said the value of funds raised by those IPOs which did occur this year had fallen even faster — down 88 per cent from $10.4 billion in 2007 to just $1.3 billion this year.
It said the average share price performance of IPOs was also sharply lower than in the boom times of previous years, with only three of the 71 IPOs to list this year currently trading above their issue price.
AUTHOR
Mike Taylor
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