Abstract:
Owing to adverse conditions in the capital markets worldwide, several
Recent IPOs have failed. In India there has been two such instances. Other countries were not spared either with United States and Europe registering several withdrawals too. The article below highlights the undulations in the capital markets globally. However, there were certain companies whose IPOs have been regarded as good.
The Indian capital markets have finally become vulnerable to the ripple effects of the US economy slowdown. More so, due to the fact that there has been a renewed fear of recession in the United States of America. As a result of which, investors are very apprehensive about investing in various investment vehicles.
Lately, many companies have come out with their IPOs or initial public offerings. Nevertheless, some of the companies had to withdraw their IPOs. Among the recent IPOs, to withdraw their subscription are:
- EmaarMGF Ltd
- Wockhardt Hospitals
SVEC Construction had to cut down the price and also extend the period of bidding. Had the Emaar MGF Ltd IPO taken off, it would have been one of the biggest IPOs in the real estate sector.
Although only two companies have withdrawn their IPO but experts suggest that this action is bound to impact the market sentiments and several other IPOs, which are on the anvil.
Nevertheless, investing in the correct investment vehicle amidst the adverse conditions deserves accolades to be won.
Among the recent IPOs, the following initial public offerings have been looked up on as the healthy:
There were many companies, which fall in this category, some of the prominent ones are as follows:
- MF Global Ltd
- Interactive Brokers
- MetroPCS Communications
- Liberty Acquisition Holdings
- Aecom Technology Corporation
- EnergySolutions
- Sapphire Industrials Corp
- DuPont Fabros Technology
- Orbitz Worldwide
- Genpact Limited
- Hicks Acquisition Company
In the United States of America, as many as ten firms have pulled out the IPOs offered by them. This is the state in the early part of 2008 when a better part of the year is still left. Similarly, few companies have also pulled out their IPOs in Europe too. One of the prominent withdrawals in Europe include the IPO withdrawal of approximately 2 billion dollar worth IPOs by Tommy Hilfiger on New York Stock Exchange (NYSE) in Amsterdam.
India is the only country where a 3.3 billion dollar has been raised by various companies through the recent IPOs in the year 2008. This has been recorded as 50% of total IPO raised in 2008 worldwide.