In our podcast, Paul Walton, Head of Business and Development for FTSE North America, discusses performance, trends, and the importance of capturing IPO data during a security's infancy.
Subscribe to our podcast in iTunes to get each of the episodes in this series delivered directly to your computer. Visit our Insight page in future weeks to see our upcoming podcasts about asset allocations in the post-recession economy.
Tune in in the next few weeks to hear two perspectives on the changing world of asset allocation.
Some highlights from our latest episode:
- Most recent IPO developments, including Chinese banks and insurance companies, have involved larger companies. Unlike traditional quoted equities, the IPO market contains many unseasoned companies without a long run of research behind them. While this is more risky, it also leads to greater potential for gains.
- Many indices do not capture IPO performance prior to 120 days after entering the market, however companies such as Mastercard and Google had very large gains during that time period. Performance of IPOs in their early days remain an important phenomenon to monitor, and the FTSE/Renaissance Capital IPO Composite Index accounts for this time period.
- In 2007 and 2008 the crisis closed off the markets for IPOs. Businesses had a hard time getting back to market. Now, in 2009 and more so in 2010, we have a robust IPO pipeline and more and more companies are coming to market.
- The Asian markets by far boast the most IPO activity. There are 119 companies planning to enter the market there, compared to 158 companies globally.
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