Initial public offerings (IPO) will be non-existent in the financial services industry this year, according to analysts.
While the credit crunch did little to slow IPO activity in 2007, recent turbulent market conditions would dampen offerings this year, Deloitte corporate finance partner Steve Woosnam said.
"The high level of uncertainty in the market means vendors of many companies will take a wait-and see approach," Woosnam said.
Macquarie Funds Management small caps portfolio manager Neil Carter said he believed there was no way financial planning businesses would be able to successfully launch an IPO in the current market environment.
"I think financial services floats this year, particularly financial planning firms, will be as rare as hen's teeth, unless the market changes quite dramatically," Carter said.
"In fact, many of the large deals that were in the IPO market pipeline this year have already evaporated."
High net worth planning group Centric Wealth delayed its 2007 IPO.
Chief executive Michael Pillemer said while the company was waiting for market volatility to settle, it still wanted to proceed.
"The recent correction is not enough to derail the group's planned float," Pillemer said.
"The IPO is part of our long-term plan and we are looking to complete it in the first half of 2008."
Data from the Deloitte IPO Report for 2007 showed the number of IPOs in the financial services sector numbered 18, compared to 11 in 2006.
Funds raised doubled to $2.74 billion, compared to $1.34 billion in 2006.
In 2007, the number of IPOs for the whole Australian market grew 41 per cent to 260 from 184 in 2006.
Financial services companies RAMS Home Loans, Platinum Asset Management and BT Investment Management accounted for three of the 10 largest IPOs in 2007.
However, only Platinum managed to end the year in positive territory, up one per cent on its listing price, while RAMS lost a staggering 88 per cent and BT ended the year two per cent lower.
