Facebook’s disappointing showing is a sign of the times for global IPOs

Initial public offerings have fallen 34% this year, with many firms fearing a repeat of the social network’s flop debut, writes Lee Spears

Initial public offerings have fallen 34% this quarter as Facebook’s disappointing debut and worsening economic conditions rattled investors, pressuring companies to lure buyers with cheaper valuations.

IPOs globally raised $41.3bn (€32.6bn), the worst second quarter since 2009, data by Bloomberg show. That compared with $62.7bn a year ago. At least 50 companies shelved sales as Europe’s debt crisis spread, growth prospects slowed in China, and Facebook’s stock sank 17% from its May 17 IPO price.