Hoover’s IPO Scorecard Business Intelligence Reveals Decline in New Offerings for Q3 2006

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Recent business intelligence shows the number of U.S. initial public offerings (IPOs) decreased 50% for Q3 2006 compared to the same quarter in 2005. In all, 32 companies have gone public compared to 63 during the same quarter last year – making for fairly sluggish IPO activity on the stock exchange.

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Producers of the alternative fuel ethanol were making a strong push into the IPO front heading into the third quarter, but much of their aftermarket performance has been lackluster

According to recent business intelligence regarding IPOs (initial public offerings), the number of U.S. initial public offerings (IPOs) decreased 50% for Q3 2006 compared to the same quarter in 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.

In Q3 2006, 32 companies went public on the major U.S. stock exchanges, raising $6.1 billion, compared to the same quarter in 2005 when 63 companies went public, raising $9.7 billion. According to business intelligence from Hoover’s IPO Scorecard, the totals for Q3 2006 also pale in comparison to those for Q2 2006, which brought 47 IPOs, raising $10.4 billion.

While there were no mega IPO pricings in July 2006, there was one large IPO filing; Hertz Global Holdings Inc. filed in July for a $1 billion offering. The remainder of Q3 did bring in a couple of big IPO pricings. In August 2006, German memory-chip maker Qimonda AG went public with a $546 million offering, followed in September 2006 by the $1 billion offering from Bermuda-based drugmaker Warner Chilcott Limited. Warner Chilcott becomes the second-largest IPO of the year, behind MasterCard’s $2.4 billion offering in May 2006.

“Producers of the alternative fuel ethanol were making a strong push into the IPO front heading into the third quarter, but much of their aftermarket performance has been lackluster,” said Kathleen Kelly, senior editor for Hoover’s. “However, the trend toward a focus on cleaner, alternative energy sources still appears to be on the upswing, with a handful of new Q3 IPO filings for solar, ethanol and natural gas-related companies.”

Findings from Hoover’s IPO Scorecard for the third quarter 2006:

IPO withdrawals and postponements were rampant in Q3 and included Internet address registrar Go Daddy Group, bar code technology company Alien Technology and nutritional supplements seller GNC Corporation.

August 2006 only ushered in 7 IPOs for stock exchange trading, compared to 31 in August 2005 (including the blockbuster IPO of #2 Chinese-language Internet search engine Baidu.com) and 19 in August 2004 (including the $1.7 billion offering from Google).

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 Q3.

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 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.

Lisa Glass

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