Ernst & Young notes that with increasing globalization and larger numbers of companies going public, professional services firms and financial reporting must be committed to restore investors' trust, especially in emerging markets.
E& Y notes record high in Global IPO activity in 2006 with US$227 billion through 1,559 IPOs increasing from US$167 billion raised in the whole of 2005. The biggest IPO listing for China ICBC raised almost US$22 billion, with second and third places belong to IPOs for Bank of China Ltd and Rosneft, each pumping in more than US$10 billion. Four out of the top 10, and six out of the top 20 deals were from emerging markets. Collectively, the top 20 deals fetched more than US$20 billion.
According to Gregory K. Ericksen, Global Vice-Chairman of Strategic Growth Markets for Ernst & Young, 'The capital markets continued to globalize in 2006, and we've seen an increase in cross-border listings and stronger competition between exchanges, creating more options than ever for both investors and companies looking to go public. 2006 was definitely the year for emerging markets. We expect they will continue to lead the way in 2007. The investment and business opportunities this will create will have a ripple effect throughout the world.'