The Winners and Losers of 2011's IPO Market

We all know how few and far between Initial Public WINNERSN LOSERS IN 2011'S IPO MARKET Offerings became in the aftermath of the 2008 recession. AND Now, nearly four years later, IPOS are picking up steam once again. Here we break down the state of the IPO market: which industries are hottest, which regions have had the most activity, and how the number of IPO in recent years compares to years past. THE HOTTEST/COLDEST INDUSTRIES As you can see, most of today's U.S. IPO activity is happening in industries related to hot-button current events like energy, finance, and health care. Leading the pack, of course, is the burgeoning technology sector. I Hot Industries I Cold Industries $10 Billion $7.2 Billion $6.5 Billion -..... $4.9.Billion $3.5 BILlion $3 Billion -****-$1.6 Billion $1.6 Billion $0.5 Billion $0.3 Billion $0.1 Billion ww ...... www.. $0.1 Billion Technology Energy Health Financial Consumer Transpor- Communi- Materials Business Capital Goods & Utilities Care tation cations Services Services Avg. First Day Return Avg. Total Return Number of IPOS 35% 27.8% 25.4% 20.4% 18.7% 11.9% 8.7% 5.2% 3.6% 1.2% 0.9% 0 .... .... 1 -0.1% -3% -10.9% -17.2% -16.9% -21.5% -21.8% -26.8% -31.4% -35% 35 (17 12 11 5 _2 Technology Energy Business Services Health Financial Consumer Transpor- tation Communi- cations Materials Capital Goods & Services Utilities Care IPO ACTIVITY BY REGION Though we frequently hear about U.S. companies going public, we actually trail the Asian Pacific in total IPOS by nearly 50 percent. 58% NORTH ASIA EUROPE AMERICA PACIFIC MIDDLE 23.8% EAST & LATIN AFRICA AMERICA 11.4% 6.4% 0.4% THE NUMBER OF U.S. IPOS IN EACH YEAR 2011 FROM I Higher IPOS Recession-Related Number of IPOS 800 675 700 600 490 474 477 458 500 397 405 382 New IPOS IPO activity plunged from 2001-2003 tanked more in 2008-2009 as a 280 284 following the result of the global 300 ... dotcom crash. recession. 174 161 157 159 200 -- 152 80 76 66 63 58 100 ... 20 .... 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 TOP 5 IPOS OF 2011 Here are this year's best-performing IPOS as of October 25: I Market Cap IPO Price: $45/share Current Price: $88.11/share $10 Billion-... $8.25 Billion IPO Price: $27/share Current Price: IPO Price: $36.61/share $12/share IPO Price: IPO Price: $18/share $12/share Current Price: $15.60/share Current Price: Current Price: $2.95 Billion $17.68/share $10.4/share $1.13 Billion $690.17 Million $489.38MIllion Linked in O® HomeAway" spirit zipcar. responsys airlines HomeAway, Inc. (AWAY) Linkedin Corporation Spirit Airlines, Inc. Zipcar, Inc. (ZIP) Responsys, Inc. (MKTG) (LNKD) (SAVE) THE MOST ANTICIPATED zynga GILT IPOS STILL AHEAD GROUPE facebook The markets are eagerly awaiting IPOS for the following companies, either later in 2011 or during 2012: GROUPON V UNIVISION Though global turbulence has stymied IPO plans for some Despite 43 of this year's 76 new U.S. IPOS (or 63 and mandated valuation adjustments for others, recent filing activity suggests going public remains a viable route for a large number of strong candidates, even if market choppiness persists. 63% percent) being underwater, there are more than 200 companies waiting to go public for the first time in -Renaissance Capital over a decade. SOURCES: RENAISSANCECAPITAL.COM, FOOL.COM, CNBC.COM FOCUS