Activity in the global initial public offering market has more than halved since 2007, according to data released Tuesday by Ernst & Young.

During the first 11 months of 2008, a total of 745 IPOs worldwide raised US$95.3 billion in capital. This compares with 1,790 IPOs over the same period in 2007, which raised US$256.9 billion.

Asian IPOs have generated the most capital this year to date (US$29.7 billion) with China accounting for 60% of funds raised in this region. North America raised US$27 billion and the Middle East & Africa US$15.9 billion — primarily driven by Saudi Arabia, which accounts for 60% of funds raised there.

The leading sectors by number of deals were materials (183 IPOs), industrials (105), and high technology (81). The top three sectors by value accounted for 63% of total capital raised: led by financials (US$26.2 billion), energy and power (US$ 18.3 billion), and materials (US$16 billion).

Of the top 20 IPOs, 15 are from emerging markets, but the top listing locations are still in the developed world. The top three exchanges for the year to date are the New York Stock Exchange, which accounted for 26.3% of capital raised (US$25.1 billion); the London Stock Exchange (5.8% capital raised, US$5.5 billion); and the Hong Stock Exchange (5.0%, US$4.8 billion). The top three exchanges by deal activity are the Australian Stock Exchange (65 deals); AIM London (27) and Hong Kong Stock Exchange (23).

“The U.S., and the New York Stock Exchange, lead the world in capital raised, due in large part to the Visa IPO,” observed Jackie Kelley, Americas IPO leader, Ernst & Young LLP. “Overall, the U.S. claimed three of the top 20 IPOs globally.”The Visa IPO was the largest IPO in U.S. history, raising US$19.7 billion on the NYSE.

Gil Forer, global director of IPO initiatives at Ernst & Young, said, “Challenging market conditions have clearly impacted investor confidence and willingness to list at this present time. But despite a slow-down in actual listings, the pipeline of companies preparing to make the transition from private entity to public enterprise remains robust.”

The firm notes that data from Dealogic shows that 298 IPOs have been postponed or withdrawn in 2008 to date compared with 167 during the full year 2007. IPO activity is at the lowest level recorded over the same 11-month period since 1995, which saw 374 IPOs raise US$52.4 billion in capital, E&Y adds.

“This strong pipeline reflects the fact that the IPO journey is widely understood as a lengthy transformational process,” Forer adds. “In fact, our research has shown that executives of outperforming companies start preparing to list a full 12 to 24 months before going public. Clearly it is difficult to predict when IPO activity will recover and capital markets need first to stabilize in order to re-build confidence. However, many companies will use current market conditions to fully prepare themselves to take advantage once the IPO window re-opens.”