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IPO market not expected to improve significantly for rest of year, says PWC survey

Although the market for initial public offerings (IPOs) was strong

Although the market for initial public offerings (IPOs) was strong during the beginning of 2012, the sector has since decelerated and will probably not recover this year, according to a survey released by PricewaterhouseCoopers (PWC).

The IPO market activity slowed significantly once mid-May was reached. The number of IPOs that happened in the second quarter of the year plunged almost 50 percent to 27, from 44 in the first quarter.

The second quarter experienced 17 companies pricing their IPOs in April and another 10 pricing their primary offerings in May. Global economic concerns caused the activity in this market to stall as the risk aversion of market participants increased. No IPOs priced between the Facebook primary offering halfway through May and the time of report.

"The IPO market entered the second quarter with considerable momentum and with confidence levels supported by the high registration pipeline," Henri Leveque, who heads up PWC’s U.S. Capital Markets and Accounting Advisory Services, said in the statement. "However, pricing activity proved unsustainable as volatility increased along with renewed concerns over global uncertainty and other market dynamics."

The declining IPO activity could hinder the creation of finance jobs, as companies holding IPOs can be a major engine of job growth.

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