Bumpy year drags U.S. share listings back to 2009 levels

Mon Dec 21, 2015 7:17pm EST
 
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By Emiliano Mellino and Elzio Barreto

LONDON (Reuters) - New share listings in the United States has their worst year since 2009, Thomson Reuters data showed on Tuesday, as a number of deals were pulled or priced below their initial range.

Global listings were down 26 percent compared with 2014, at $185.9 billion. The worst hit market was the United States, which has booked $28.7 billion in initial public offerings activity so far this year, down 48 percent on 2014.

Asia also suffered, with listings down 36 percent at $65 billion, but Europe was up 2 percent at $69.1 billion.

"We all thought that we might finally get a year where we would be able to put four quarters together," said UBS UBSG.VX global head of equity capital markets (ECM) Sam Kendall.

"If you looked at the pipeline and how people were thinking about the world, it just felt good and then the wheels came off."

The strong run of deals at the beginning of the year was blown off course during the summer, as concerns over a slowdown in China and uncertainty around a looming U.S. rate rise increased volatility to levels not seen since 2011, at the height of the European debt crisis..

Also, the China Securities Regulatory Commission (CSRC) abruptly suspended listings approvals in mid-June.

In the United States, listings including grocery chain Albertsons (ABS.N: Quote), luxury retailer Neiman Marcus [NMRCUS.UL], and telecoms firm Digicel DCEL.N were delayed or pulled.   Continued...

 
Traders work on the floor of the New York Stock Exchange (NYSE) in New York December 17, 2015. REUTERS/Lucas Jackson