Read Larry Connors' blog – Short Term Trading Strategies
Although 2008 witnessed the largest IPO offering in history from Visa Inc., which raised $17.9 billion, representing 60.9% of the total IPO proceeds raised in 2008, IPO activity for the year was the lowest since the late 1970s. America Water Works Company, Inc. was the only other IPO during 2008 that raised more than a billion dollars as compared to seven IPOs with more than a billion in proceeds in 2007.
"The volatility and performance of the equity markets presented increasing challenges to the IPO market during 2008, with uncertainty around valuations creating difficulty in pricing deals," said Scott Gehsmann, a capital markets partner in PricewaterhouseCoopers' Transaction Services Group.
An increased number of companies withdrew or postponed their IPOs during 2008. As of December 31 2008, 105 IPOs had been either postponed or withdrawn, compared to 25 withdrawn or postponed deals for the same period in 2007. After a continual increase of financial sponsor-backed and special purpose acquisition company ("SPAC") IPOs during the last few years, the trend reversed rapidly in 2008. Financial sponsors backed only 14 IPOs totaling $2.3 billion in 2008, a significant decrease from 163 such IPOs that raised $30.0 billion in 2007. SPAC IPOs declined from 49 offerings in 2007 to 12 in 2008, and total proceeds fell from $9.9 billion to $3.5 billion, respectively.
IPOs from non-U.S. issuers also declined, completing only 17 IPOs that raised a mere $1.9 billion in the U.S. during 2008. This was a significant decline from 2007, which saw 56 offerings that raised $16.7 billion. "The decline was felt globally as the European and Greater China markets witnessed steep declines in IPO activity as well," said Gehsmann.
On the prospects for a recovery of IPO activity in the U.S. in 2009, Gehsmann posits that investors looking for returns beyond those offered in other investments could help "unfreeze" the equity market. That said, the 'thaw' is expected to be slow, and significant IPO activity may not return until later in 2009.
U.S. IPO Watch is a quarterly survey of all IPOs listed on U.S. exchanges. These include IPOs by domestic and foreign companies, best-efforts, business development companies, filings with the FDIC, and bank demutualizations. IPOs do not include unit investment trusts and fully classified closed-end funds. This survey captures IPOs listed between January 1, 2008 and December 31, 2008. Visit www.pwc.com/ustransactionservices for PwC's 2004, 2005, 2006, 2007 and 2008 U.S. IPO Watch reports.
About PricewaterhouseCoopers' Transaction Services practice
The PricewaterhouseCoopers' Transaction Services practice provides due diligence on both the buy and sell side of transactions, along with advice on M&A strategy, valuation, accounting, financial reporting, and capital raising. For companies raising money on U.S. or overseas capital markets, we offer a strategic perspective, practical solutions and a holistic service approach that help management anticipate and resolve a broad array of transaction, financial reporting, and registration process challenges before they have a negative impact on deal value or timing. With over 450 capital market specialists and over 6,000 deal professionals in over 40 countries, experienced teams are deployed with deep industry and local market knowledge, and technical experience tailored to each client's situation.
About PricewaterhouseCoopers
PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 155,000 people in 153 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.
"PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: PricewaterhouseCoopers
Brainerd Communicators, Inc.
Jennifer Gery-Egan
(212) 986-6667
gery@braincomm.com
PricewaterhouseCoopers LLP
Kathryn Oliver
(860) 301-0402 (mobile)
kathryn.oliver@us.pwc.com
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.