Tuesday, August 11, 2009

IPOs Bounce Back in Q2 and First Half of Q3 2009

TechCrunch -- Another small sign that the worst of the recession may be behind us: IPO registrations are clawing their way back from the shadow of the valley of death (also known as the first quarter if 2009, when there were zero IPOs registered with the SEC). So far in July and August alone there have been 14 IPOs, as many as in the previous three quarters combined. These numbers and the chart above are based on the number of IPO filings tracked by Hoovers as of yesterday. Renaissance Capital counts 16 IPO registrations in July and August, and if you look on the SEC’s Edgar site it looks like a few more filed today.

Registering for an IPO doesn’t mean that the company is actually going to go through with it, but the volume of filings is a good confidence index for startups. Most of the companies filing are not technology-related (Hyatt Hotels, RailAmerica, Bayview Mortgage Capital), although Ancestry.com did file on August 3. In terms of actual IPOs, we saw five venture-backed companies start trading in the second quarter, including OpenTable, which is still trading above its $20 offering price.

All this means is that more companies are willing to take a shot at going public, which is encouraging in and of itself. But don’t expect the actual number of IPOs to recover for at least another year.

MP: We're only about half way through the third quarter, and we can expect even more IPO registrations over the next seven weeks left in Q3 2009.

Originally posted at Carpe Diem.


At 8/11/2009 11:59 PM, Anonymous Anonymous said...

I think that we are starting to come out of the recession only because cap and trade, and health care don't look like they'll pass.

And remember, Heritage has a list of a lot of tax cuts that expire over the next few years. Plus, Obama bound to get a few of his own tax increases in before 2010.

At 8/12/2009 6:56 AM, Anonymous Anonymous said...

Look how well tech IPOs did last time. Oh, there's a few big names out there but San Jose is still littered with the rotting corpses of office buildings from the last tech bubble.

The Tech Pulse Index of the New York Fed is showing annualized growth in June at NEGATIVE 12.9%. Industrial production, employment, investment, shipments were all down. Only personal consumption expenditures on tech goods rose in May. The average annual growth is more than 15%.

Time to buy? Perhaps. Sign of recovery? Not at all.

Oh, but we only look at indexes which are positive here. I forgot. Only good tasting news gets to be Carpe Diem.


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