Hoover's IPO Scorecard Reveals Second Year-Over-Year Decline in New Offerings for 2008
Number of U.S. IPOs in Second Quarter Decreased 77% from Same
Quarter Last Year
AUSTIN, Texas--(Business Wire)--
Hoover's, Inc. (http://www.hoovers.com) today announced the number
of U.S. initial public offerings (IPOs) decreased 77% for Q2 2008
compared to the same quarter a year ago, as revealed in Hoover's IPO
Scorecard (http://www.hoovers.com/ipo/scorecard). This follows on the
heels of Q1 2008, which saw a 73% decline in new offerings compared to
Q1 2007.
In Q2 2008, only 13 companies went public on the major U.S. stock
exchanges, raising $4.2 billion, compared to Q2 2007 when 57 companies
went public, raising $15.6 billion. So far this year, U.S. IPOs have
raised $23.1 billion via 25 deals (Visa's Q1 2008 IPO represents $17.9
billion of this total), down 4% from the January through June 2007
period, when 101 IPOs raised $24.1 billion.
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Findings from Hoover's IPO Scorecard for the second quarter 2008:
-- Best First-Day Gain: Hong Kong Highpower Technology, Inc. 110%
Worst First-Day Drop: Verso Paper Corp. -17%
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-- Increased demand for food and agricultural commodities was apparent
in the strong IPO performance of Intrepid Potash, the largest
U.S.-based company that mines the essential potash fertilizer
ingredient. The company's April IPO raised $960 million.
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"It's evident that investor concerns about subprime mortgage
losses, rising oil prices and the slowing economy continued from Q1
into Q2, based on the small number of companies going to market and
the lackluster aftermarket performance of a majority of them," said
Tim Walker, Hoover's industry expert. "Although some are predicting a
Q3 resurgence of the IPO market, several factors may stack the deck
for a continued downward trend, including tighter credit markets, fear
about a possible recession and the fact that we're in a presidential
election year. Some IPO hopefuls, as well as investors, may wait to
see what a new administration might bring before deciding to take the
risk."
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Best-Returning IPOs for Q2: Offer Q2 Close Return
Intrepid Potash, Inc. $32.00 $65.78 106%
Hong Kong Highpower Technology, Inc. $3.25 $4.84 49%
Colfax Corporation $18.00 $25.09 39%
Pioneer Southwest Energy Partners L.P. $19.00 $22.35 18%
American Water Works Company, Inc. $21.50 $22.18 3%
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Hoover's delivers comprehensive insight and analysis about more
than 27 million private and public companies worldwide, as well as
information about industries and the people you need to know. Hoover's
analyzes the IPO market daily to produce the quarterly IPO Scorecard.
Each IPO Scorecard includes an assortment of facts selected by
Hoover's editors for those following the IPO market, including the
best- and worst-performing IPOs, the biggest one-day jumps and drops
in the first day of trading, and a breakdown of IPOs by industry
sector.
About Hoover's, Inc.
Hoover's, a D&B company, provides its customers the fastest path
to business with insightful information about companies, industries
and key decision makers, along with the powerful tools to find and
connect to the right people to get business done. Hoover's provides
this information for sales, marketing, business development, and other
professionals who need intelligence on U.S. and global companies,
industries, and the people who lead them. Hoover's unique combination
of editorial expertise and one-of-a-kind data collection with
user-generated and company-supplied content gives customers a
360-degree view and competitive edge. This information, along with
powerful tools to search, sort, download and integrate the content, is
available through Hoover's (http://www.hoovers.com), the company's
premier online service. Hoover's is headquartered in Austin, Texas.
Hoover's, Inc., Austin
Lisa Glass, 512-374-4662
lglass@hoovers.com
Copyright Business Wire 2008
