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.
With over 200 IPO’s ready for launch in 2012, it could be the biggest IPO year since the 20th century. Here’s a brief recap found within an infographic by Focus.
Click to see the full infographic.
(H/T: Tagged.com)
Star Zagofsky says
Honestly, I’m afraid of a Facebook IPO, and not just because their valuation has fluctuated. I’m afraid that being public will make them revenue-only focused and the average user will lose out. I’m afraid that the potential negatives mentioned in this article (Will Facebook Be Free Forever? – ) will come true.
prowest says
PREDICTION: The dollar will be further devalued and so will the euro; prices will increase.
And TSA will be in even more places besides airports, bus stations, train stations, Highway checkpoints (VIPR Teams) and football stadiums.