Facebook’s botched listing casts shadow over IPO market, according to Q2 data
The second quarter of 2012 has brought an increase in proceeds for the US IPO market, although it has seen a lull in the number of companies going public.
Completed IPOs were down 42 percent by comparison with Q1 2012, and 50 percent down on the same period in 2011, according to data from the National Venture Capital Association (NVCA) and Thomson Reuters.
This lull follows the disappointing Facebook offering in May, after which the number of IPOs came to a standstill for five weeks.
The slowdown is also a clear indication of a drop in investor confidence over concerns regarding the economic situation in Europe, says Mark Heesen, president of the NVCA, in a release. This is further evidenced by the VIX measure of market volatility, which increased by 11 percent for the second quarter.
The new JOBS Act may be a bright light on the horizon, however: allowing companies to register for IPO confidentially could mean a flux in numbers later in the year.
