New research from Renaissance Capital, an investment advisory firm, reports an upsurge in IPO filings this past quarter. Twenty companies filed to go public in the past three weeks, eight of which published their prospectuses the week ending April 5, according to an article in CFO. The numbers reflect an increase in IPO activity, at least in the pipeline. It was the highest number of prospectus filings since the week of March 19, 2012.
Data from PwC, cited in the CFO article, confirms the trend. As has been said elsewhere in earlier editions of this newsletter, there is pent-up demand and supply for IPOs. According to Renaissance Capital external pressures and economic crisis had “virtually froze” the IPO market from the between 2009 and 2011.
The risks in banking and finance have not been fully resolved but they are largely known, which is having a positive effect on the IPO sentiment, it said. The heat map at the top of the infographic shows that the US has raised the most proceeds from IPOs this year. (Image source: Renaissance Capital)