IPOs Off to Record Start in 2011 (EPOC) (DMD) (GEVO) (NPTN)
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Ernst & Young's Global IPO trends report 2011 stated that IPO activity is off to a record start in the first two months of 2011 with $25.3 billion raised in 193 deals, as investors looking to cash in on the emerging markets that are fueling the global stock market rallies.
"The shortage of exit routes, the lack of capital-raising and the numerous listing postponements since the financial crisis began in 2007 have created a growing IPO pipeline worldwide. The secondary-market momentum is also expected to continue as companies ramp up their capitalization to record levels, particularly to support acquisitions," Gregory K. Ericksen, Global Vice Chair for Strategic Growth Markets for Ernst & Young, said.
The report said that the Greater China is set to maintain the lead in the global IPO markets, as the first two months of 2011 saw, the Shanghai Stock Exchange raised US$4.0b from 8 IPOs and the Shenzhen Stock Exchange raised US$6.5b, from 51 deals.
"As the only Chinese exchange fully open to foreign investors, HKEx has become a platform for China-based companies with international ambitions who seek access to global funds," Ericksen said.
In the first two months of the year, exchanges in the U.S. have raised $9 billion in 26 deals, while a backlog of about 150 companies expected to raise around $42 billion.
"Although the first two months to 2011 has seen a record start, the current upward trajectory may not necessarily be smooth as global macroeconomic risks could yield further market volatility. However, barring another unforeseeable crisis, 2011 global IPO markets are expected to be stronger than in 2010."
European exchanges have raised $1.8 billion in 26 deals through February.
Some top performing IPOs thus far in 2011:
Epocrates Inc. (NASDAQ: EPOC), up 46.75 percent to $23.48 from IPO price.
Demand Media Inc. (NYSE: DMD) up 39 percent to $23.63 from IPO price.
Gevo Inc. (NASDAQ: GEVO) up 28.67 percent to $19.30 from IPO price.
NeoPhotonics Corp. (NYSE: NPTN) up 27.36 percent to $14.01 from IPO price.
"The shortage of exit routes, the lack of capital-raising and the numerous listing postponements since the financial crisis began in 2007 have created a growing IPO pipeline worldwide. The secondary-market momentum is also expected to continue as companies ramp up their capitalization to record levels, particularly to support acquisitions," Gregory K. Ericksen, Global Vice Chair for Strategic Growth Markets for Ernst & Young, said.
The report said that the Greater China is set to maintain the lead in the global IPO markets, as the first two months of 2011 saw, the Shanghai Stock Exchange raised US$4.0b from 8 IPOs and the Shenzhen Stock Exchange raised US$6.5b, from 51 deals.
"As the only Chinese exchange fully open to foreign investors, HKEx has become a platform for China-based companies with international ambitions who seek access to global funds," Ericksen said.
In the first two months of the year, exchanges in the U.S. have raised $9 billion in 26 deals, while a backlog of about 150 companies expected to raise around $42 billion.
"Although the first two months to 2011 has seen a record start, the current upward trajectory may not necessarily be smooth as global macroeconomic risks could yield further market volatility. However, barring another unforeseeable crisis, 2011 global IPO markets are expected to be stronger than in 2010."
European exchanges have raised $1.8 billion in 26 deals through February.
Some top performing IPOs thus far in 2011:
Epocrates Inc. (NASDAQ: EPOC), up 46.75 percent to $23.48 from IPO price.
Demand Media Inc. (NYSE: DMD) up 39 percent to $23.63 from IPO price.
Gevo Inc. (NASDAQ: GEVO) up 28.67 percent to $19.30 from IPO price.
NeoPhotonics Corp. (NYSE: NPTN) up 27.36 percent to $14.01 from IPO price.
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