Welcome!

API Journal Authors: Pat Romanski, Rishi Bhargava, John Basso, Liz McMillan, Steven Lamb

News Feed Item

2012 IPO Market Surpasses 2011, Despite Slowdown in Fourth Quarter Activity, PwC Says

2012 IPO Volume and Proceeds Raised Exceeds 2011 Positive Returns and IPO Pipeline Fuels Cautious Optimism for 2013

NEW YORK, Dec. 19, 2012 /PRNewswire/ -- Total volume and proceeds raised in the 2012 IPO market increased over 2011, despite the slowdown in activity during the fourth quarter, according to IPO Watch, a quarterly and annual survey of IPOs listed on U.S. stock exchanges by PwC US.  Following a strong performance in October, the market pulled back as companies waited for clarity on U.S. fiscal policy, PwC said. For the full year, the IPO market saw 138 companies completing their IPOs as of December 13, 2012, raising total proceeds of $40.7 billion, compared with 134 companies that had completed their IPOs for all of 2011 raising $35.5 billion, according to the survey.

(Logo: http://photos.prnewswire.com/prnh/20100917/NY66894LOGO)

Although the 2012 volume of IPOs surpassed 2011, the value raised -- when excluding the $16.0 billion Facebook IPO -- was only $24.7b, which was a 30% decrease in proceeds raised. The current year lacked the large number of billion dollar plus IPOs in 2011, and saw the average IPO size in 2012 decrease to $180 million when excluding Facebook, which was a reduction of 32% from the average IPO in 2011 of $265 million.   

The IPO market began robustly in the fourth quarter, with October IPO volume equaling that of March - both months were the highest of the year with 21 IPOs. IPO proceeds during October reached the second-highest monthly level of the year, after May, which included the Facebook IPO.  IPO activity began to retreat in November as investors turned their attention to the Presidential election and fiscal outlook.  All told, there were 33 U.S. IPOs in the fourth quarter of 2012, surpassing the 29 IPOs in the third quarter of 2012, and 28 IPOs in the fourth quarter of 2011. Total proceeds raised in the fourth quarter were $6.3 billion, down 5 percent from $6.6 billion the third quarter of 2012, and down 3 percent from $6.4 billion in proceeds in the corresponding quarter in 2011. 

Click here to view: Value and volume of IPOs by quarter

Click here to view: Q4 comparison: Value and volume of IPOs

"Following a very strong October, companies began to take a more cautious approach given the presidential election, uncertainty of the Congressional budget negotiations and the fiscal cliff," said Henri Leveque, leader of PwC's U.S. Capital Markets and Accounting Advisory Services.  "Still, the 2012 IPO market surpassed the prior year on the strength of several larger offerings and opportunistic moves by smaller companies looking to tap the public markets when windows opened."

According to PwC, financial sponsors continued to remain active in U.S. IPOs, backing 42 percent of Q4 2012 IPOs and 68 percent of the IPOs on a year-to-date basis.  Private equity also remained active in executing on new deals, accounting for 18 percent of total M&A deal volume in 2012, according to PwC's M&A Outlook.  

Click here to view: Value and volume of Financial Sponsor-backed U.S. IPOs

"Financial sponsors continued to use the equity markets to monetize their earlier investments while accessing the debt markets to finance new transactions," said Leveque. "Further, the increased availability of debt, including high yield, is fuelling new transactions and creating a long-term sustained pipeline of potential IPOs down the road."

During the fourth quarter of 2012, the energy and financial services sectors, which had ten and seven IPOs respectively, were the leading sectors with 33 percent and 26 percent of the proceeds, respectively.

Click here to view: Value and volume of U.S. IPOs by industry

IPOs continued to outperform as a sector in the fourth quarter, with stock price gains exceeding broader equity market returns. On a quarter-to-date basis, all 33 IPOs that priced in the fourth quarter of 2012 increased their price by an average of 11 percent on their first day of trading, and averaged a return of 12 percent after one week.  In addition, on a quarter to date basis, all 33 IPOs are on average 21 percent above their issue price, again outperforming the S&P500, which showed a quarterly decline of approximately one percent.

Two-thirds of IPOs priced within the initial projected range, with four of the 33 IPOs pricing above their initial projected ranges, 22 pricing within their initial projected range, and seven pricing below their initial projected range.

According to publicly available filing information, 17 companies entered the IPO registration process during the fourth quarter of 2012, a 55 percent decline from the 38 companies that entered in the third quarter of 2012. Three of the 17 new filers also priced in the fourth quarter of 2012.   The publicly visible IPO pipeline also declined during the fourth quarter and as of December 13, 2012, the overall IPO pipeline of companies that had filed in 2012, included 63 companies seeking to raise $13.2 billion. This represents a 34 percent decrease compared to the 95 companies in the pipeline at the end of the third quarter 2012, and a 31 percent decrease in the proceeds being sought. The pipeline is led by the Technology, Healthcare, Financial, Energy and Consumer sectors. These five sectors combined account for 87 percent of the total proceeds being sought in the pipeline.

According to PwC, a portion of this decline may be due to the confidential filing provisions provided by the JOBS Act, which were designed to allow Emerging Growth Companies (EGC) the ability to work confidentially with the SEC, and are only required to publicly disclose their filings within 21 days of their anticipated IPO roadshow.  During the fourth quarter of 2012, 27 of the 33 IPOs that priced their offerings were EGCs, as defined under the JOBS Act.  "From our perspective, the IPO pipeline remains healthy, as we continue to provide support and preparation to the increasing number of (EGC) filing confidentially under the JOBS Act," added Leveque.

According to PwC, despite the pause in IPO pricings during the fourth quarter, the runway for entering the public markets is active as reflected by the considerable number of companies that are filing under the JOBS act.  This underlying volume of activity bodes well for the IPO market as we enter 2013.

Outside of the U.S., the positive trends in European IPO activity seen at the end of the third quarter have continued into the fourth quarter, which is set to be the strongest of the year with two IPOs in London and one IPO in Germany raising in excess of €1 billion each.  While economic and political conditions remain challenging across Europe, the outlook for IPOs is as positive as we have seen for some time.

Meanwhile in Asia, IPO activities regained pace with the debut of another mega IPO on the Hong Kong exchange raising USD 3.1 billion, becoming the largest offering in Asia ex Japan after a USD3.3 billion IPO in Malaysia in June this year.  Interest in listing in Asia is expected to resume gradually with market sentiments and fund flow liquidity continuing to pick up well into 2013 and a strong pipeline of potential listings that companies have postponed from 2012.

PwC US IPO Watch is a quarterly and annual survey of IPOs listed on U.S. stock exchanges.  These include IPOs by domestic and foreign companies, best-efforts, business development companies, filings with the FDIC, and bank demutualization's.  IPOs do not include unit investment trusts, commodity trusts and fully classified closed-end funds.  Visit our website, www.pwc.com/us/ipo, for the annual 2011 US IPO Watch and information about PwC's IPO Services.

PwC's Deals practitioners help corporate and private equity executives navigate transactions to increase value and returns. In today's increasingly daunting economic and regulatory environment, our experienced M&A specialists assist clients on a range of transactions from smaller and mid-sized deals to the most complex transactions, including domestic and cross-border acquisitions, divestitures and spin-offs, capital events such as IPOs and debt offerings, and bankruptcies and other business reorganizations. We help clients with strategic planning around their growth and investment agendas and advise on business-wide risks and value drivers in their transactions for more empowered negotiations, decision-making and execution.  We help clients expedite their deals, reduce their risks, capture and deliver value to their stakeholders and quickly return to business as usual.  Our local and global deal strength is derived from over 1,400 deal professionals in 21 cities in the U.S. and over 9,800 deal professionals across a global network of firms in 75 countries.  In addition, our network firm PwC Corporate Finance provides investment banking services within the U.S.  For more information, visit www.pwc.com/us/deals.

About the PwC Network
PwC firms help organizations and individuals create the value they're looking for. We're a network of firms in 158 countries with more than 180,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com.

Learn more about PwC by following us online: @PwC_LLP, YouTube, LinkedIn, Facebook and Google +.

© 2012 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the US member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

SOURCE PwC

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Yahoo! Inc. (Nasdaq: YHOO) have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash, subject to customary closing adjustments. Yahoo informs, connects and entertains a global audience of more than 1 billion monthly active users** -- including 600 million monthly active mobile users*** through its search, communications and digital content products. Yahoo also co...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.