Capital Markets

Best Q1 for IPOs in Seven Years

In the first three months of this year, 64 IPOs raised $12.1 billion, according to a study by PricewaterhouseCoopers.
Stephen TaubMay 18, 2007

In both volume and proceeds, initial public offerings in the United States recently concluded their best first quarter in the past seven years, according to a new report from PricewaterhouseCoopers.

In the first three months of this year, 64 IPOs raised $12.1 billion, compared with 54 offerings and $11.6 billion in the first quarter of 2006. In the fourth quarter of 2007 — a time when many underwriters seek to finalize deals before year-end — $19.7 billion was raised from 89 IPOs.

Equities markets in general enjoyed a strong first quarter, making it easier for underwriters to bring deals to market. The average deal size of $190 million, however, trailed the $216 million for the first quarter of 2006 and the $221 million for the fourth quarter.

Other notable findings:

• Financial sponsors backed 40 percent of all IPOs in the first quarter and raised 55 percent of proceeds.
• The five largest deals accounted for 34 percent of proceeds in the first quarter this year, compared with 32 percent in the fourth quarter and 36 percent a year earlier.
• By far the largest IPO was the $1.64 billion offering of CurrencyShares Japanese Yen Trust, which seeks to track the price of the yen.
• The largest corporate IPO was by National Cinemedia, a marketing firm that raised about $800 million.
• Among the top 10 deals, 3 were in financial services, 3 were in communications, 2 were in real estate and construction, and 1 each was in energy and business services; a year ago the top 10 included 4 energy IPOs but none in financial services.