With five companies slated to go public next week, the initial-public-offering market is on track for its best two-week period since December 2007 — when there were 13 IPOs spread over two weeks.
With five companies slated to go public next week, the initial-public-offering market is on track for its best two-week period since December 2007 — when there were 13 IPOs spread over two weeks.
“The past few weeks have been a lot better story than what has happened in the past several months, that's why 10 IPOs in two weeks is pretty robust,” said Tim Walker, IPO analyst with Hoovers Inc.
By historical standards, the current IPO activity is still well below peak periods like the 1990s, but compared with the past 18 months, the latest activity is showing signs that the market has started to thaw.
According to Renaissance Capital LLC, there were 23 IPOs year-to-date through today. Over the first three months of 2009, just one company went public.
Although the IPO market started to show some activity in the fourth quarter of 2009, it had virtually shut down between August 2008 and April 2009, during which just two companies went public.
Along with the increased activity, analysts are also focused on the performance of the stock once it starts trading. This is the component that really works to move executives off the fence, according to Mr. Walker.
Financial Engines Inc. Ticker:(FNGN), which went public on March 15, has seen its shares climb nearly 42% above the $12 initial offering price.
MaxLinear Inc. Ticker:(MXL), which went public on Tuesday at $14 a share, has since gained nearly 29%.
And First BancSystem Inc. Ticker:(FIBK), representing the first bank to go public in nearly three years, has seen its shares gain almost 11% since it went public on Tuesday at $14.50.
Companies scheduled to go public next week include Meru Networks Ticker:(MERU), Primerica Ticker:(PRI), Scorpio Tankers Ticker:(STNG), SS&C Technologies Ticker:(SSNC), and Tengion Ticker:(TNGN).
