Increase in emerging markets IPO activity is a sign of market strength

ON EMERGING MARKETS

MARK MOBIUS, executive chairman of Templeton Emerging Markets Group on Emerging Markets

Privatisation of state-owned enterprises has been a key catalyst in unlocking the market potential of emerging economies. I believe listing on stock exchanges or allowing market forces to work can ensure greater efficiency in effective resources deployment. In recent years, we have seen a rise in initial public offerings in emerging markets as EM companies begin to recognise the advantages of going to the market to raise capital in order to expand and grow. At the end of 2009, emerging markets IPOs represented about 70% of all global IPOs, as compared to about 20% in 2000. During 2009...