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Fresh wave of deals hits the US IPO market; nine companies launch within three days
Analyst IPO Market Commentary
US IPO market
activity is off to a strong start in the second quarter of 2011 with nine new deals launched within the past three days. These nine companies, which span a wide range of industries including financial services, technology, transportation, energy and health care, have filed to raise an estimated $2 billion in aggregate IPO proceeds. The diverse crop includes REITs AG Mortgage Investment Trust (
) and STAG Industrial (
), aircraft lessor Air Lease Corporation (
), shipping company Box Ships (
), marketing software firm Responsys (
), wireless chip manufacturer Sequans Communications (
), crude oil and refined products logistics assets spinoff Tesoro Logistics LP (
), injectable pharmaceuticals company Sagent Pharmaceuticals (
) and outsourced steel services provider TMS International (
The sudden onset of filings suggests the window is beginning to open again for the US IPO market. Global volatility in recent weeks resulted in a muted period for IPOs as companies waited on the sidelines for a more favorable market environment to raise capital. With
fears subsiding, candidates in the US IPO pipeline that have been filing amendments and updating year-end results are now coming forth with specific pricing terms and timing. Strong debuts from recent IPOs such as China's Qihoo 360 (
; +104%), hardware/software services revenue platform ServiceSource International (
; +28%) and talent software provider Cornerstone OnDemand (
; +46%) likely acted as further catalysts.
There are eleven
US companies expected to go public
within the next two weeks, with notable deals include car-sharing services provider Zipcar (
) and Latin American McDonald's franchisee Arcos Dorados (
). Deal flow outside of the US is accelerating as well, particularly in
, which has three blockbuster LSE listings on the horizon. There are currently 35 global (US and non-US) deals already scheduled on the IPO calendar, which could raise more than $13 billion in total proceeds.
Keywords / Tickers: AL, MITT, STIR, SQNS, MKTG, TLLP, SGNT, TMS, CSOD, SREV, ARCO, ZIP
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