The number of UK initial public offerings has fallen a ten year low and the market is not expected to pick up until the second half of 2003, according to KPMG Corporate Finance.

Neil Austin, head of new issues at KPMG Corporate Finance, said: "With confidence at an all time low and the inevitable lag as companies need time to complete their preparations once the market recovers, it is hard to see any significant turnaround before the second half of 2003 at the earliest. However, some of the frustrated IPO candidates need to find an alternative strategy, usually where private equity houses are significant shareholders and need to realise that investment."