Monday, March 21, 2016

Report: IPO Activity In Significant Slowdown

A new report, issued Monday, says that IPO activity has slowed significantly in Q1, with a 39 percent drop in volume and 70 percent decline in total capital raised versus Q1 of last year. The report, from Ernst & Young, said that companies are likely exploring other options or waiting for confidence to return for their IPOs. The report found 167 deals raised only $12.1 billion in Q1 of 2016--the weakest first quarter of the year since 2009. The report noted concerns about a "global economic slowdown, falling oil prices and turbulent equity markets." The last IPO in Southern California was for Kura Oncology, which raised $57.5M in an IPO in November of last year; KURA is now trading at just over $4.00, at nearly half its $8.00 per share IPO price in November. Photo courtesy Michael Theis @ Flickr.

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