IPO Activity Returns to Pre-Recession Levels in Second Quarter

7/26/11Follow @bvbigelow

The economic deep freeze is thawing for IPOs on U.S. exchanges, according to a quarterly report issued today by the Ernst & Young accounting firm.

The number of companies in registration for an initial public offering increased to 140 during the three months that ended June 30, according to the latest the “Ernst & Young U.S. IPO Pipeline” study. That’s almost 24 percent more than the 113 companies that were registered during the same quarter last year, according to Ernst & Young’s data. Beneath story, I’ve put together a list of companies in the IPO pipeline for each Xconomy city as of June 30.

Ernst & Young says the 140 companies now in the lineup represent a potential total of $23.7 billion in estimated market valuation. That’s down from the $25.3 billion in total value during the same quarter last year, but the highest number of companies registered to go public since late 2007, when the financial crisis was beginning to engulf the U.S. economy. Just 28 companies were in registration at the end of the second quarter in 2009, one of the darkest periods of the recession.

A total of 42 companies went public on U.S. markets during the second quarter, a 13.5 percent increase over the 37 IPOs during the second quarter of 2010.

The warming trend is good news for the venture firms and other investors that view IPOs as a key way to keep the capital flowing to new companies, and to exit from startup companies with a return on their investments. Of the 140 companies in the IPO pipeline, venture capital firms back 40 percent, 31 percent are backed by private equity firms, and 23 percent are backed by both.

Technology-related IPOs accounted for 25 of the total companies in the pipeline at the end of the quarter, and they are trying to raise a total of $4.4 billion. The oil and gas industry was the next bigger sector, with 17 companies trying to raise a total of $4.6 billion. Other active sectors include financial companies, retail and wholesale, and diversified industrial products. Here’s a breakout of companies in the pipeline for each Xconomy city:

The San Francisco Bay Area

Imperva, Foster City, (Software)

Corsair Components, Fremont, (Computers and Peripherals)

Quark Pharmaceuticals, Fremont, (Pharmaceuticals)

Ambarella, Menlo Park, (Semiconductors)

Circle Bancorp, Novato, (Banking)

BrightSource Energy, Oakland, (Energy)

SS/L Holdings, Palo Alto, (Communications)

Enphase Energy, Petaluma, (Industrial Instruments)

Iron Planet, Pleasanton, (Business Services)

Ubiquiti Networks, San Jose, (Communications)

BlueArc, San Jose, (Computers and Peripherals)

Apache Design Solutions, San Jose, (Software)

Inteleeper, San Mateo, (Software)

CafePress, San Mateo, (Textile and Apparel)

WageWorks, San Mateo, (Professional Services)

InvenSense, Sunnyvale, (Software)

Cortina Systems, Sunnyvale, (Software)

Boston Area

Bruker Energy & Superconducting Technologies, Billerica, (Industrial)

NEXX Systems, Billerica, (Industrial)

Carbonite, Boston, (IT and Computer Services)

Dunkin’ Brands Group, Canton, (Restaurants)

GlassHouse Technologies, Framingham, (IT and Computer Services)

Aspen Aerogels, Northborough, (Industrial)

Myriant, Quincy, (Biotechnology)

New York Area

Avaya Holdings, Basking Ridge, NJ, (Communications)

Primus Therapeutics, Skillman, NJ, (Pharmaceuticals)

Toys “R” Us, Wayne, NJ, (Retail)

New Century Transportation, Westhampton, NJ, (Transportation)

Party City Holdings, Elmsford, NY, (Wholesale)

ConvergEx, New York, NY, (Software)

Telx Group, New York, NY, (Other Communications)

Seattle Area

Homestreet, Seattle, (Banking and Financial)

Impinj, Seattle, (Technology)

Zillow, Seattle, (Professional Firms and Services)

San Diego

Peregrine Semiconductor, San Diego, (Semiconductors)

IASO Pharma, San Diego, (Pharmaceuticals)

Detroit Area

Ally Financial, Detroit, (Banking and Financial)

Delphi Automotive, Troy, MI, (Automotive)

Bruce V. Bigelow is the editor of Xconomy San Diego. You can e-mail him at bbigelow@xconomy.com or call (619) 669-8788 Follow @bvbigelow

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