The May IPO and aftermarket performance of Vonage Holdings Corp., currently trading down 145% from its offer price, may have partly contributed to investor skepticism headed into Q3, as some investors were looking to Vonage's performance as a sign of a broader tech recovery
Austin, TX (PRWEB) January 3, 2007
According to recent business intelligence regarding IPOs (initial public offerings), 205 companies went public on the major U.S. stock exchanges in 2006, a 5% increase in the number of IPOs over 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.
The 205 IPOs offered on the NYSE, NASDAQ and AMEX in 2006 raised $41.1 billion, compared to 196 IPOs in 2005, which raised $34.1 billion. In addition, 2006 ushered in seven IPOs that each raised more than $1 billion, while 2005 produced only one - Huntsman Corporation, which raised $1.38 billion in February 2005.
Year-in-Review from Hoover's IPO Scorecards:
"Mega" IPOs of 2006:
1) MasterCard (Q2) - raised $2.6 billion
2) Sprit Aerosystems Holdings Inc. (Q4) - raised $1.4 billion
3) Douglas Emmett Inc. (Q4) - raised $1.39 billion
4) Hertz Global Holding (Q4) - raised $1.3 billion
5) Melco PBL Entertainment (Macau) Limited (Q4) - raised $1.14 billion
6) SAIC Inc. (Q4) - raised $1.13 billion
7) Warner Chilcott Holdings (Q3) - raised $1.06 billion
Q1 2006: According to business intelligence from Hoover's, January's 11 IPOs marked the biggest January for IPOs since 2000. The lure of well-known consumer brands brought investors back to the table. January brought the successful IPO of McDonald's-owned burrito chain Chipotle Mexican Grill, Inc., which closed up 100% on its first day of trading and continues to trade up 159%. February ushered in the IPO of the popular footwear maker Crocs, Inc., which continues to trade up 106% and became the largest IPO ever for a footwear maker.
Q2 2006: The May 2006 MasterCard IPO, which raised $2.6 billion on the stock exchange, was the largest public offering of the year. Along the restaurant/retail vein, retailer J. Crew went public this quarter, becoming one of the largest apparel IPOs in recent history, while Burger King Holdings, the world's #2 burger chain, also went public in May.
Q3 2006: The number of U.S. IPOs on the stock exchange decreased 50% this quarter (32), compared to Q3 2005 (63), as many planned IPOs were either postponed or withdrawn from the calendar. Nevertheless, this quarter managed to bring in one of the year's "mega"-IPOs -- that of Bermuda-based drugmaker Warner Chilcott Limited, which raised $1.06 billion in September.
Q4 2006: The Dow Jones Industrial Average set a series of highs this quarter, paving the way for increased investor confidence in the IPO market, according to business intelligence from Hoover's. In fact, five of the year's biggest IPOs debuted this quarter, including Douglas Emmett, Inc., which raised $1.39 billion and became the largest IPO for a U.S. real estate investment trust (REIT). Energy futures exchange NYMEX Holdings, Inc., went public in November with a 125% first-day gain, edging out Chipotle to become the best first-day gainer for all of 2006.
"The May IPO and aftermarket performance of Vonage Holdings Corp., currently trading down 145% from its offer price, may have partly contributed to investor skepticism headed into Q3, as some investors were looking to Vonage's performance as a sign of a broader tech recovery," said Kathleen Kelly, senior editor for Hoover's. "The overall IPO market definitely rebounded in Q4, however, with December's last-minute rush of IPOs. By December eighth, only five companies had gone public, but by mid-month the floodgates opened, with an additional 25 IPOs making it out the door before the holiday."
Potentially on the horizon for 2007 -- Time Warner Cable Inc. filed to go public in Q4 2006, in an IPO that could raise more than $1 billion. Following in MasterCard's footsteps, VISA also announced in Q4 that it would pursue IPO plans as part of a restructuring that will occur within the next 12 to 18 months.
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.
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 Q4 2006.
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 up-to-date 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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