Marvin Rowe Comments on International IPO Slowdown

PHILADELPHIA, PA, December 06, 2012

While many Americans look for signs of slow, tentative progress toward economic recovery, there is new evidence to suggest that the global economic slowdown is still in full effect, and that it may even continue into 2013. Bloomberg reports that, last quarter, initial public offerings around the globe dropped to their second-lowest levels since the financial crisis first hit, a sign of continued stagnation that is likely to extend at least into the early part of next year. The Bloomberg report caught the attention of Marvin Rowe, an investment banking professional living and working in Zurich and assisting companies with their international IPOs.

In the three months through September, initial share sales worldwide generated 48 percent less than in the previous quarter. Bloomberg notes some minor bright spots in the form of Japan Airlines, completing the biggest IPO since Facebook, but for the few success stories, there arose many companies to shelf their offerings after failing to procure the price desired form investors. Some of these companies include guitar manufacturer Fender Musical Instruments Corp. and CKE Inc., the company that owns fast food chain Hardee's.

Additionally, the article cites the continued post-IPO drop of Facebook's stocks. In fact, Bloomberg confirms that Facebook's stocks have dropped by as much as 53 percent, due in large part due to the company pricing its shares more expensively, relative to earnings, than most other companies.

This data was especially striking to Marvin Rowe, long-time investment banking professional. Marvin Rowe currently works to assist companies in raising capital via IPO and pre-IPO capital raises. Rowe has issued a new statement to the press, offering his own commentary on recent IPO developments, both in the U.S. and abroad, but also citing some reasons for measured optimism.

"While Facebook should not be relied on as a yardstick for the success of other IPOs, I agree that this market does call for more realistic company valuations," says Marvin Rowe, in response to the Bloomberg story. "Nonetheless, public valuations are still far greater than for private company counterparts. We are giving more attention to our clients at the pre-IPO funding phase, which helps to solidify reasonable valuations for the ensuing IPO."

For all of the sobriety featured in the new Bloomberg story, Marvin Rowe says that there is some good news--and that this good news should not be ignored. "Even though we've seen a slowdown, we shouldn't discount the fact that IPOs were still responsible for raising over $21 billion worldwide in the in last quarter alone, so good companies are still able to successfully raise capital," concludes Marvin Rowe, "and that, after all, is typically the name of the game."

ABOUT:

Marvin Rowe is a financial professional currently living and working in Zurich, Switzerland. His work entails assisting companies as they conduct IPOs on international stock exchanges, particularly in Europe, including assistance with both pre-IPO and IPO financing. Marvin Rowe has a wealth of hands-on experience amassed during his two-decade career in investment banking, both in the United States and Europe.

Website: http://marvinroweblog.com