Mobius expects emerging market IPOs to double in 2011

Emerging markets guru Mark Mobius says it is "critical" to monitor the supply and demand for EM stocks with the number of IPOs set to double in the coming year.

In the past year, $240bn in IPOs and secondary issues have hit the market, but Mobius, executive chairman of the Templeton Emerging Markets Group, warns this "avalanche" could swamp the market and suppress prices. "Last year the total number of IPOs exploded as the markets were going up and companies rushed in. This year we expect double that, and there are still a lot more waiting in the wings," Mobius says. However, Mobius is positive there is still demand for emerging markets exposure as global investors are still underweight the region. He says emerging market stocks represente...