2010 was a good year for the economy in terms of the number of initial public offerings (IPO). 2011 is trending to be slower overall with 76 as of October 25th versus 152 in 2010. It was still a strong year compared to the start of the recession in 2008 and 2009 when there were 78 combined for both years.
There were losers in this year’s crop, but those who found success did so in a big way. LinkedIn, HomeAway, and Spirit Airlines are all showing good numbers compared to their launch price. Most, however, are still underwater.
There were enough filings this year in preparation for 2012 to fill a bathtub. Some, such as Groupon and Yelp, are fighting to keep their IPOs valid through public skepticism. Others, such as Facebook and Zynga, offer a mixed bag of high-profile and high-profit with questions about their value versus perception.
The thing that gives hope for 2012 is the bulk. With so many filings, rumors of filings, and speculations from The Street, one has to believe that if the job market can make gains and if some of the 2011 crop show growth, the country and the world is primed for strong investment opportunities. Even in a bad worldwide economy, investors will only hold back for so long. The bottleneck that was created in 2008-2009 was not relieved fully in 2010. The numbers in 2011 are indicative of “the calm before the storm” in business investments.
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