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Global IPO volume drops 25% in 2015, growth still seen in Asia-Pac: EY

GLOBAL initial public offerings raised 25 per cent less money in 2015 with the Asia-Pacific region outperforming the rest of the world, according to a report by EY.

There were 1,218 new listings in 2015 around the world, which raised US$195.5 billion in capital. Those proceeds were less than the amount raised in a bumper 2014 but still above the 10-year median of US$176.1 billion.

Asia-Pacific deal volume outpaced the rest of the world, with US$90.2 billion raised in 2015 from 673 deals. With deal proceeds up 8 per cent, the region was the only one that posted growth against 2014.

Asia-Pacific deal volumes accounted for 46 per cent of all IPO proceeds raised around the world in 2015. In Europe, the Middle East, India and Africa, total deal volume fell 10 per cent to US$67.1 billion, while US IPO proceeds fell 65 per cent to US$33.3 billion.

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EY said there is currently a pipeline of about 690 companies in China ready for listing now that Chinese exchanges have re-opened to IPOs.

"Activity in Asia-Pacific has largely been driven by the huge and ongoing demand to access the public markets in China," EY South-east Asia and Singapore managing partner Max Loh said in a statement. "A range of economic headwinds, including uncertainty and volatility, low oil and commodity prices and exchange rate volatility affected the level of IPO activity in South-east Asia but ultimately failed to substantially impact the volume and value of IPOs across Asia-Pacific overall. With the outlook improving, we expect an uptick in new listings in 2016 with the pipeline already primed."