Hoover’s IPO Scorecard: Q4 2011 and year-end recap

IPO activity in 2011 started off strong in the US capital markets but fizzled out mid-year mostly due to the European debt crisis. According to Hoover’s IPO Scorecard, 116 companies went public last year, raising a total of $33.4 billion. That’s down 14% from 2010, when 153 companies went public and collectively raised $38.7 billion.

The first half of the year saw strong results — 28 companies raised $12 billion in Q1 and 44 companies raised $11.9 billion in Q2. As the debt crisis worsened in Europe, IPO activity in the US dwindled down to $3.1 billion in Q3, making it the worst quarter since Q2 of 2009, which raised a mere $1.6 billion.

In Q4 of 2011 alone, 26 companies went public on major US stock exchanges, raising $6.4 billion. (That’s a sliver of activity compared to the last quarter of 2010, when 57 companies went public and raised $24.3 billion.) There were, however, some highly anticipated IPOs for Internet companies in Q4, notably Groupon and Zynga. Social gamer Zynga was the period’s only billion-dollar IPO, raising $1 billion on the nose. (Groupon walked away with $600 million). The only other high-dollar IPO for Q4 was fashion design house Michael Kors, which set up shop in Hong Kong and raised $944 million. Michael Kors also had the second-best first day gain for the quarter, with a return rate of 36%.

Still, those billion-dollar IPOs couldn’t redeem the entire year. Altogether, there were six IPOs that raised at least $1 billion in 2011 (Arcos Dorados, HCA Holdings, Kinder Morgan, Nielsen Holdings, Yandex, and Zynga), up from just one in 2010 (General Motors). Those six IPOs combined raised $11.4 billion, while General Motors’ was valued at $15.7 billion. Of the six, only three (HCA Holdings, Kinder Morgan, and Zynga) are headquartered in the US.

Back to Q4, where one industry prevailed — energy. Eight of the 26 companies (or 30%) that priced last quarter are oil and gas concerns. However, only one — Sanchez Energy — raised more than they initially sought. (Unfortunately, Sanchez Energy posted the third-worst first day drop in trading for the quarter, for a 22% loss.) The other five — Bonanza Creek Energy, Inergy Midstream, Laredo Petroleum Holdings, LRR Energy, Memorial Production Partners, Mid-Con Energy Partners, and Rose Rock Midstream — all apparently overestimated the value of their IPO.

Findings from Hoover’s IPO Scorecard for Q4 2011:

Best-Returning Q4 US IPOs

Imperva, Inc.

 

Offer

$18.00

Q4 Close

$34.81

  Return

   93%

Michael Kors Holdings Limited  

$20.00

$27.25

36%

 
Jive Software, Inc.  

$12.00

$16.00

33%

 
InvenSense, Inc.  

$7.50

$9.96

33%

 
Laredo Petroleum Holdings  

$17.00

$22.30

31%

 
Angie’s List, Inc.  

$13.00

$16.10

24%

 
Ubiquiti Networks, Inc.  

$15.00

$18.23

22%

 
Mattress Firm Holding Corp.  

$19.00

$23.19

22%

 
Inergy Midstream, L.P.  

$17.00

$18.95

11%

 
Clovis Oncology, Inc.  

$13.00

$14.09

8%

 
Manning & Napier, Inc.  

$12.00

$12.49

4%

 
Groupon, Inc.  

$20.00

$20.63

3%

 
LRR Energy, L.P.  

$19.00

$19.61

3%

 
Rose Rock Midstream, L.P.  

$20.00

$20.58

3%

 
Mid-Con Energy Partners, LP  

$18.00

$18.35

2%

 
NewLink Genetics Corporation  

$7.00

$7.04

1%

 
Delphi Automotive PLC  

$22.00

$21.54

-2%

 
Memorial Production Partners  

$19.00

$18.08

-5%

 
Zynga Inc.  

$10.00

$9.41

-6%

 
Enduro Royalty Trust  

$22.00

$20.47

-7%

 
ZELTIQ Aesthetics, Inc.  

$13.00

$11.36

-13%

 
Intermolecular, Inc.  

$10.00

$8.58

-14%

 
Rentech Nitrogen Partners L.P.  

$20.00

$16.35

-18%

 
Sanchez Energy Corporation  

$22.00

$17.26

-22%

 
Bonanza Creek Energy, Inc.  

$17.00

$12.50

-26%

 
Digital Domain Media Group  

$8.50

$6.08

-28%

 

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Tracey Panek

Tracey Panek retired from journalism at the ripe old age of 29 to work for Hoover's, where she enjoys writing about international and publicly traded companies.

Read more articles by Tracey Panek.

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