Initial public offerings increased by double in the second quarter after companies from Blackstone Group LP sold businesses before a reversal in stock markets curbed some sales. The sale was made to Banco do Brasil SA.
The number of IPOs were raised to a value of US$42 billion. The increase of IPOs in the second quarter went higher compared with the US$20 billion made in the first quarter. This was led by Banco do Brasil's sale of its insurance unit valued at US$5.7 billion. This was the biggest offering of the year according to a data compiled by Bloomberg.
Suntory Holdings Ltd. of Japan proceeded with an IPO last week with prices near the low end of the range. HD Supply Holdings Inc and CDW Corp priced below their original targets. Votorantim Cimentos, a Brazilian cement producer rescheduled its planned IPO for September.
The IPO market provided gains to buyers in the second quarter. Shares of newly public firms also rose by an average of around 8.2%. This was even after markets fell according to Bloomberg's compiled data.
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