Mining Sector IPO Party Hit By Headwinds

Global headwinds appear to have knocked the froth off the strengthening rebound in global share issuance by mining firms in the year-to-date (y-t-d). The announcement by the Australian government to implement a 40% 'super tax' on mining company profits from July 2012, coupled with the impact of Beijing's decision to raise the reserve requirement for its major banks, have sent shockwaves across the mining industry worldwide, with stocks suffering as a result. After recording the highest global mining sector volume of IPOs and follow-ons on record - according to Dealogic data - we are now starting to see a hasty retrenchment in risk appetite on the part of investors.

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