IPO Market Outlook From Renaissance Capital
September 9, 2011

IPO Backlog Hits Record Despite Market Turmoil
As recent headlines suggest, economic gloom and extreme volatility have taken their toll on the IPO market. In the month of August alone, 21 US companies nixed plans to go public, 11 of which officially withdrew their filings, the most to do so since the onslaught of the financial crisis. While the immediate effects of the capital market fallout have temporarily halted IPO issuance, behind-the-scenes data suggest a more encouraging outlook.

Deals continue to be completed at a healthy pace, with 96 IPO pricings so far this year, as compared with 87 as of early September 2010 and 31 during the entirety of 2008. Filing activity remains robust, reflecting a still sizeable backlog of private companies and, more importantly, a willingness to move forward in the IPO process. As a result, the US IPO pipeline has surpassed the 200-deal mark for the first time in over a decade. Though global turbulence has stymied IPO plans for some and mandated valuation adjustments for others, recent filing activity suggests going public remains a viable route for a large number of strong candidates, even if market choppiness persists. As such, we remain optimistic that deal flow will resume, characterized by a heightened focus on fast-growing companies with strong fundamentals. more
US IPO Pipeline
Key Statistics Sep. 2010 Sep. 2011 Change
Number of Deals† 170 202 +19%
Number of Filings 185 205 +11%
Estimated Proceeds (US$)* $56.8b $51.0b -10%
Number of VC-Backed Deals 42 54 +29%
Number of PE-Backed Deals 42 57 +36%
†Includes all deals that have filed or amended an IPO registration statement within the last two years. Excludes SPACs and companies that have announced acquisitions.
*Based on proposed deal size on file with the SEC; 2010 includes $15b deal size estimate for GM, 2011 includes deal size estimates for ALLY, ILFC, DLPH and CARL.
Source: RenaissanceCapital.com



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