A boost of activity in the market for initial public offerings is fueling optimism this critical financial lifeline for new companies may be mending.
“We have witnessed a significant uptick in registration and pre-registration activity (e.g., banker pitches, financial sponsor interest in IPO readiness, CFO searches, etc.),” PricewaterhouseCooper’s Scott Gehsmann said in a press release on Friday.
This signals a growing pipeline of deals, said Gehsmann, a capital markets partner. Gehsmann predicts the number of IPOs this year will exceed the 57 of last year.
The growing interest follows a modestly better third quarter. The number of deals in the United States rose to 20, the highest level since the first quarter of 2008. It is double the number in the third quarter last year.
According to PricewaterhouseCoopers, there were three in the alternative energy industry, two in healthcare, four in high tech and seven in financial services. Among the clean-tech deals was A123 Systems. There was only one clean-tech deal in the third quarter a year ago.
European markets also saw an increase in the third quarter. Offerings volume rose to $2.6 billion, and in the United Kingdom, there was a significant increase in deals. Activity improved in both Hong Kong and Shanghai.
Source: PricewaterhouseCoopers
