Initial public offerings slowly rebound

September 19, 2010
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The number of IPOs in the U.S. has risen in the two years since the mortgage-backed securities nearly collapsed the financial market in 2008. According to Renaissance Capital, 87 IPOs have been held this year through August — more than double the offerings that took place in all of 2008.

At the same time, investor confidence also is on the rise. The Center for Audit Quality reported earlier this month that its annual survey of individual investors showed that 75 percent said they felt confident in investing in publicly owned U.S. companies, due to the firms’ audited financial information.

But their confidence in the nation’s capital markets fell to 68 percent this year from 73 percent last year, and confidence in foreign capital markets fell to 47 percent this year, a drop of 10 points from 2009.

“The four years we have surveyed individual investors have coincided with a major economic crisis. While investors are concerned with the performance of the markets, they continue to have confidence in public companies and their audited financial statements,” said Center for Audit Quality Executive Director Cindy Fornelli, of the survey that interviewed 1,001 investors.

The following chart lists the number of IPOs and the volumes of those offerings from 1999 through 2010.


Year
2010*
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999

 

No. of
IPOs
87
64
43
276
222
214
218
68
70
86
407
486

 

IPO
Volume
$13.1 billion
$22.5 billion
$28.0 billion
$60.6 billion
$45.0 billion
$35.7 billion
$43.7 billion
$15.2 billion
$23.7 billion
$41.3 billion
$97.0 billion
$92.6 billion

*Numbers are through Sept. 2, 2010.

Source: Renaissance Capital, Greenwich, Conn. (www.renaissancecapital.com), Sept. 2010

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