Facebook's initial public offering was not the only one that took place in the first half of the year, though no one could blame investors for thinking otherwise.
So far this year, 71 US companies have completed IPOs and raised $26.9 billion of total proceeds, according to the PwC US IPO Watch. However, IPOs dropped from 44 in the first quarter to 27 this quarter.
The second quarter started out strong, PricewaterhouseCoopers said today in a press release, but IPO activity stalled at the end of May, because ongoing global macroeconomic concerns increased market volatility and made investors skittish. Consequently, no pricings have been completed in the US since the Facebook IPO in mid-May, which raised $16 billion, PwC said.
Global market activity has also declined, PwC said. Second-quarter IPO activity dropped 65 percent from a year earlier in Europe and 40 percent in Asia.
Companies continue to register their intent to go public, fueling hope that activity will pick up in the second half of the year, PwC said in the release.
“The IPO market entered the second quarter with considerable momentum and with confidence levels supported by the high registration pipeline,” said Henri Leveque, leader of PwC's U.S. Capital Markets and Accounting Advisory Services. “However, pricing activity proved unsustainable as volatility increased along with renewed concerns over global uncertainty and other market dynamics. That said, as the markets are seeing increasingly compressed IPO windows of opportunity, our clients are now more than ever focused on readying themselves to be able to execute deals when, and not if, the windows re-open.”
The US technology sector had the most IPOs in the second quarter (eight), followed by financial services (six).