Global IPO Activity Reaches Record Levels in 2007, Says Ernst & Young

Emerging Markets Drive Activity; China Leads the Way
LONDON--(Business Wire)--Global initial public offering (IPO) activity reached record
levels in 2007, with capital raised at an all-time high and the number
of companies choosing to go public in the first 11 months of this year
exceeding the whole of 2006, according to figures released today by
Ernst & Young.

From January through November 2007, US$255 billion was raised
globally through 1739 IPOs - compared to US$246 billion raised in 1729
deals in the whole of 2006. The year-end spike in IPO activity seen in
2006 looks likely to be repeated in 2007 with preliminary data for the
first two weeks of December indicating a further US$18 billion raised
in 91 IPOs.

This record level of activity has been achieved despite the
absence in 2007 of the mega-deals seen in recent years. The largest
IPO of 2007 to date was Russia's VTB Bank, which raised US$8.0
billion, some way short of Chinese bank ICBC's US$22 billion, the
largest IPO of last year.

IPO activity continues to be driven by the emerging markets, which
accounted for the majority of the largest deals of the year - 14 out
of the top 20 IPOs, compared with nine of the top 20 in 2006. By
industry, financial companies continue to dominate, representing
one-quarter of all funds raised. Industrial and real estate also
accounted for some of the biggest deals of 2006.

Brazil, Russia, India and China - the so-called BRIC countries -
have raised US$106.5 billion in 382 deals so far this year, compared
with US$89.6 billion raised in 302 deals in the same period of 2006.
Of that group China generated more IPOs (209) than Russia, Brazil and
India combined (173).

Worldwide, China, the US and Brazil were the market share leaders
by capital raised with US$52.6 billion, US$38.7 billion and US$29.0
billion raised respectively. China also led the way in terms of the
number of listings with 209, ahead of Australia and the US with 189
and 178 IPOs respectively.

"The increased activity across the emerging markets stems from the
growth of their economies and the ongoing globalization of the capital
markets. This has seen the rise of new world-class financial centers,
investors look further afield for investment opportunities, and the
continuing trend of companies looking to list on domestic exchanges -
almost all of the top 20 IPOs in 2007 went public in their home
countries," Gil Forer, Global Director of IPO Initiatives at Ernst &
Young, said.

"The surge in IPO activity in China is a clear reflection of the
growth in the Chinese economy and the confidence investors have about
putting their money into China," Forer said. "Conversely, some of the
mature markets saw a drop in the number of IPOs in the second half of
2007, which could be attributed to the high volatility of the
markets."

Unsurprisingly, Asia-Pacific accounted for 46% of IPOs worldwide,
ahead of Europe, the Middle East, and Africa (EMEA) with 35%, and
North America with 14%. EMEA and Asia-Pacific have the greatest market
share of capital raised with 38% and 32% respectively, eclipsing North
America (16%) and Central & South America (14%).

The total share of the leading exchanges was down this year from
51% to 45% by number of listings, and from 72% to 58% by total capital
raised. Despite accounting for only 4% of the total number of IPOs so
far this year, HKSE was the leading exchange by capital raised,
attracting a 13% market share, mainly due to having some of the year's
largest listings, including China CITIC Bank and China Railway.

NYSE was ranked second by capital raised (11%), attracting 3.6% of
total listings driven by a number of large US deals, including
Blackstone Group and MF Global. Although only 2% of IPOs through
November listed on LSE, it attracted 10% of capital raised, mainly
through a few large Russian deals, including VTB Bank and Pik Group.

"Despite ongoing market uncertainty, the pipeline of IPO-ready
companies looking to list in 2008 looks healthy, especially across the
emerging markets," Forer concluded.

About the report

The data presented in Ernst & Young's year-end Global IPO report
is from Dealogic, Thomson Financial and Ernst & Young. The data
focuses on IPOs of operating companies, and we define an IPO as: a
company's first offering of equity to the public.

Only those IPOs for which Dealogic, Thomson Financial and Ernst &
Young hold data regarding the issue date (the day the offer is priced
and allocations are subsequently made), trading date (the date on
which the security first trades) and proceeds (funds raised including
any over allottment sold) are included. Postponed IPOs or those which
have not yet priced are therefore excluded.

About Ernst & Young

Ernst & Young is a global leader in assurance, tax, transaction
and advisory services. Worldwide, our 130,000 people are united by our
shared values and an unwavering commitment to quality. For more
information, please visit www.ey.com.

Ernst & Young refers to the global organization of member firms of
Ernst & Young Global Limited, each of which is a separate legal
entity. Ernst & Young Global Limited, a UK company limited by
guarantee, does not provide services to clients.

This news release has been issued by EYGM Limited, a member of the
global Ernst & Young organization that also does not provide any
services to clients.

Ernst & Young Global
William Mutton, +44 (0)20 7980 0532
william.mutton@uk.ey.com

Copyright Business Wire 2007