First Half 2011 IPO Market Results

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NYSE Euronext is leading the world in capital raising through the first half of 2011, continuing a trend this year of issuers from around the world raising capital in the U.S. markets and on the NYSE. (see)

Despite challenges in the overall market, such as commodity price volatility, sovereign debt both domestic and international, global austerity measures, and a sluggish U.S. recovery, issuers have continued to come to the market, with good results. Venture capital companies have finally found a market in 2011, following a dismal few years of public offerings of vc-backed companies. Private equity investors are eyeing the opportunity to return their portfolio companies to an accepting public market, that also seems to have interest in the PE firms as public vehicles of permanent capital.

Technology issuance has also grabbed headlines, with valuation haters (“we saw this in the last bubble”) and bullish prognosticators (“look at the growth rates”) pulling on either end of the rope in a tug-of-war. What we have seen so far in public technology issuance is the beginning of the next wave, and investors can’t get enough of it, at least for now.

China remains a strong source for new issuance, but questions around the veracity of financial statements has challenged the entire sector---exceeding expectations and delivering consistent transparent results is the only way through the storm. As we look deeper into the pipeline of new issuance, we see companies of all sizes and from most major regions of the world and sectors within the economy. 

In the end, we remain weighted neutral to bullish through the remainder of the year.

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