Overall, there are bouts of heavy IPO activity followed by weeks of inactivity. This lack of a steady increase in the number of companies going public makes it tough for IPO hopefuls trying to figure out the right time to come out of the gates.
Austin, Texas (PRWEB) April 5, 2006 –
According to recent business intelligence regarding IPOs (initial public offerings), 44 companies went public on the major U.S. stock exchanges in Q1 2006, raising $8.5 billion, as compared to the same quarter in 2005 when 40 companies went public, raising $10 billion. This represents a 10% increase over Q1 2005, as reported today by Hoover’s IPO Scorecard. Hoover’s Inc. is a D&B company that gives its customers a competitive edge with insightful information about industries, companies, and key decision makers.
With a number of high-profile IPOs still waiting in the wings to price in 2006, including MasterCard (seeking to raise $2.45 billion), J. Crew, and SAIC, Inc. (looking to raise $1.73 billion), business intelligence by Hoover’s IPO Scorecard reports the 2006 IPO market still managed a record-breaking start, with January’s 11 IPOs marking the biggest January for IPOs since 2000.
February 2006 was even busier, with 24 IPOs reflecting debuts from high-end restaurants and hotels, as well as a high-returning energy IPO. EXCO Resources raised $650 million, and Morton’s Restaurant Group raised $153 million. Morgans Hotel Group, founded by Ian Schrager (also founder of New York’s Studio 54 nightclub), also went public in February but closed down on its first day of trading, according to Hoover’s IPO Scorecard.
“The lure of well-known consumer brands continues to attract investor interest, as shown by the positive performance of several first quarter IPOs including McDonald’s-owned burrito chain Chipotle and popular footwear maker Crocs,” said Rachel Brush, vice president of customer operations and quality for Hoover’s. “Overall, there are bouts of heavy IPO activity followed by weeks of inactivity. This lack of a steady increase in the number of companies going public makes it tough for IPO hopefuls trying to figure out the right time to come out of the gates.”
Findings from Hoover’s IPO Scorecard for the first quarter 2006:
Chipotle went public in late January, pricing at $22 per share and doubling to close at $44 per share on its first day of stock exchange trading. Crocs had its IPO in February, rising 36% on its first day of trading and raising $208 million. Crocs’ IPO represents the largest ever for a footwear maker.
A number of large, well-known companies either filed to go public in Q1 or announced plans to file soon, including Burger King, Internet-based phone company Vonage, Bratz doll maker MGA Entertainment, and Levi Strauss, which initially went public in the 1970s only to become private again in the 1980s via a leveraged buyout. Halliburton also plans to spin off 20% of its KBR (Kellogg Brown & Root) unit.
Please see the attached table for details about the best first-day gain and worst first-day drop, as well as a list of the top 10 best-returning IPOs for Q1.
Hoover’s provides continuously updated business intelligence about thousands of private and public companies worldwide and analyzes the IPO market daily to produce the quarterly IPO Scorecard, a regular wrap-up of IPO activity released on the IPO Central section of Hoover’s. Each IPO Scorecard includes an assortment of facts selected by Hoover’s editors for those following the IPO market, including the best- and worst-performing IPOs, the biggest one-day jumps and drops in the first day of stock exchange trading, and a breakdown of IPOs by industry sector.
About Hoover’s, Inc.
Hoover’s, a D&B company, gives its customers a competitive edge with insightful business intelligence about industries, companies and key decision makers. Hoover’s provides this updated information for sales, marketing, business development, and other professionals who need intelligence on U.S. and global companies, industries, and the people who lead them. This information, along with powerful tools to search, sort, download and integrate the content, is available through Hoover’s premier online service. Hoover’s business information is also available through corporate intranets and distribution agreements with licensees, as well as via Hoover’s books. The company is headquartered in Austin, Texas.
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