U.S. IPO Market Surprisingly Strong
October 9, 2009 by Mark Ellis
Filed under Business
At a time when a withering recession and the shadow of the financial meltdown weigh on America’s economy, it seems almost implausible that the initial public offering market is doing exceedingly well. However, a report released today by PricewaterhouseCooper’s Transaction Services showed that the third quarter’s of 2009’s 20 offerings raised a total of $5.8 billion, compared to the first quarter’s five offerings raising $967 million.
The report shows that the IPO market has gone from what many analysts call rock bottom in the first quarter of the year to the IPO market’s strongest showing since early 2008. Throughout 2009, the IPO market picked up consistently after its abysmal first-quarter showing, with the third quarter containing four of the top five IPOs of the year.
In comparison to the third quarter of last year, this quarter’s IPO market saw the amount of cash raised quadruple and the amount of individual IPOs almost double. Investor confidence in startup businesses brings good news for the stock market, showing that investors are willing to be less conservative with their money.
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