By Joseph A. Giannone
SAN FRANCISCO (Reuters) - Initial public offerings by technology companies, in a deep slump since the bubble burst in 2000, will rebound next year as investors seek out high-growth firms and as technology spending climbs, a senior Morgan Stanley investment banker said Tuesday.
"All things being equal -- if the economy doesn't fall apart, rates don't go back up and oil doesn't stay at $80 a barrel -- it feels like the IPO market is going to be a very vibrant market over the next 18 months," managing director Colin Stewart said at the Reuters Venture Capital Summit in San Francisco.
"We're excited. We have a big pipeline and hopefully we'll have a number of deals before the end of the year and into next year," he said.
"I think a good year for us (the industry) would be something between 50 to 70 IPOs," Stewart, who as vice chairman of global capital markets helps raise equity and debt capital for companies worldwide, later told Reuters Television when asked about 2007.
That's about one fifth the record high of 349 tech IPOs that priced in 1999, but double the yearly average since 2001.
Yet tech stock offerings have enjoyed a warmer welcome from investors recently, after years of getting the cold shoulder.
Since mid-July, five technology offerings all priced at or above the high end of their projected range and then performed well afterward.
Stewart said these strong debuts are fueled by a thin supply of high-growth companies and demand among investors struggling to beat their performance benchmarks. Continued...
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