While holding out the prospect of a turnaround, the PwC IPO Watch "special focus" notes that the loss of market stability and corporate confidence have been damaging. The report calculates that 79 offerings were completed through June 30, generating $24.3 billion in proceeds --- an amount sharply higher than the $9.4 billion raised by 70 IPOs in the prior year's first half. But now, "disruptions in the overall market and a variety of recent macroeconomic events may present considerable challenges for companies looking to execute an IPO in the coming months," according to Henri Leveque, leader of PwC's Capital Markets and Accounting Advisory Practice. "The summer months, particularly August, are typically a slower time for IPO activity, so it will remain to be seen how quickly market stability and confidence returns and whether those companies waiting in the wings will move forward with their IPO plans come September."

Tracing the effect of the uncertainty --- especially that caused by chaotic global stock markets --- PwC US says that the investor appetite for IPOs in the short term has been hurt. In the second week of August, there were 12 IPOs scheduled to price, but six were postponed as of the middle of last week.

The unit of PricewaterhouseCoopers points to the S&P 500 Volatility Index, which is an indicator of investors' IPO appetite, and noted that it had jumped to over 47 last Tuesday, indicating increased caution for potential IPO investors. With the exception of a March spike, that index had been on steady decline for over a year, and was approaching 15 --- a level favorable for pricing IPOs.

The lowest volatility rating in recent years, at the end of 2006, approached 10, which coincided with a high in IPO activity. Still, according to PwC, the current jump is far from the 89 level of October 2008, when IPO activity hit at an all-time low. Looking at the bright side, PwC's report says that if the index declines during the rest of August and into early September, IPO activity could restore the "prior buoyant levels of activity for the balance of 2011."