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Fashion’s contribution to best year for IPOs since 2004

By FashionUnited

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ANALYSIS_ A new report by Ernst & Young has dubbed 2013 to be the best year for initial public offerings or IPOs in almost a decade. By the end of 2013, the global amount of IPOs will likely advance 3 percent to 864. This 3 percent advancement

will be the first uptick since 2010. Those 864 initial public offerings will raise circa 163 billion dollars, that’s it 27 percent more than last year, as an Ernst & Young report showed.

The
figures lend support to the recovering confidence of firms and investors, a trend that is set to extend into next year, E&Y said in a note to investors this week.

The US market led the recovery this year in terms of both IPOs and capital raised, followed by the Greater China area, Ernst & Young said.

Jackie Kelley, who leads the Ernst & Young's America's IPO team highlighted the environment propitiated by strong economic conditions and low volatility market, which encouraged companies continue to demonstrate sturdy post-IPO performances.

"We also had a huge backlog of private equity investments over the last five to seven years, and private equity firms are now looking to exit those investments,” Kelley added. To date, 40 percent of the companies that went public in 2013 did so backed by private equity firms.


Seven apparel companies floated in the best year for IPOs since 2004

With Moncler’s floatation comes a golden brooch for IPOs within the fashion and apparel market in the dubbed as the best year for initial public offerings of the last decade.

Since April, Burlington Stores, Brunello Cucinelli, Italia Independent , Zulily, Vince, Bonmarché and Moncler have debuted at the trading floor in New York, London and Milan, covering both primary and alternative stock markets.

Retail sector contributed with ten IPOs in the past twelve months in the US alone, as “Consumer retail is always a classic play on economies coming back. It’s been the hope in Europe and the UK for a while, and it seems like it’s coming through now,” as explained back to September John Millar, a director in equity capital markets at Espirito Santo Investment Bank.


Fashion retailers to contribute to IPO market in 2014

KupiVIP, a leading Russian fashion e-tailer, has advanced its intentions to go public in 2014 in New York, aimed to rise up to 125 million dollars, while Bohoo.com is eyeing an IPO in London. It is also in London where House of Fraser would be potentially going public, if the department store operator’s owners decide to finally float the company.

Additionally, Raffaele Jerusalmi, the chief executive of Italy’s stock exchange, brought the Milan stock markets in the limelight, advancing in summer that at least six luxury goods and fashion companies are looking to list in Milan in the first half of 2014. Some of them would have shown interest in the small cap market.


initial public offering
IPO