US IPO activity to remain steady

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The Independent Online

The pace of flotations on US equity markets is expected to remain steady next year after the number of listings more than doubled in the past 12 months.

As of last Thursday, 159 companies had raised $38.8bn (£25bn) via listings in the US, according to figures from PricewaterhouseCoopers (PwC), making 2010 the best year, in terms of volumes, for flotations since 2007. The number of IPOs was more than double the figure last year, while the average size was $242.9m.

But despite the strength seen in the past 12 months, volume over 2011 is likely to remain flat, or end up only slightly higher, according to analysts and investors. "The level of activity that we have seen in 2010 is more of an indicator of an IPO market that has worked its way out of a trough as opposed to the complete recovery," PwC's capital markets partner, Scott Gehsmann, said.