After a slow start to the year, the 2011 IPO market is taking off with 20 upcoming deals already scheduled on the calendar. The market only recently began its quick ramp with an impressive 18 companies having disclosed pricing terms for their IPOs since last Monday. With the recent boost in filings, January's IPO market is on pace to continue the accelerated levels of deal flow seen toward the end of 2010: there were 20 offerings completed in both November and December of last year, the most activity the IPO market has seen since 2007.
Furthermore, there were eight IPOs completed during the first five weeks of last year, whereas this year is positioned to see 19 IPOs within the same timeframe (based on the current IPO calendar).
Another interesting trend is the elevated number of healthcare companies planning to go public, especially after the sector's notable absence in the IPO market last year. As noted in our 2010 Annual Global IPO Review, healthcare activity in 2010 was more than 50% below prior cycle levels with only 17 priced deals for the full year (compared with 42 in 2007). By contrast, there are already seven healthcare-related companies scheduled to come to market within the first two months of 2011. These IPOs range from early stage biotechs (AcelRx (ACRX); Pacira Pharmaceuticals (PCRX); Endocyte (ECYT)) and drug information network operators (Epocrates (EPOC)) to medical device companies (Kips Bay Medical (KIPS)) and implant providers (Tornier (TRNX); BioHorizons (BHZN)).
The 13 other IPOs on the calendar span a wide range of industries, including media, technology, financial services and agriculture. This shows a step up in diversity from last year, which was characterized by mostly fast-growing Chinese ADRs and tech IPOs. Of the 20 total deals on the calendar, only three are based in China: menswear designer Zuoan Fashion Limited (ZA), mobile application provider Trunkbow International (TBOW) and TV ad agency China Century Dragon Media (CDM).
While there has already been one IPO this year, the true season kick-off will be next week, led by two high-profile IPOs: online content provider Demand Media (DMD) and consumer behavior analysis company Nielsen Holdings (NLSN), both of which are scheduled to price on Tuesday after the market close. Demand Media has generated buzz as the largest Internet IPO (based on market value) to go public since Google, while Nielsen could be the largest private equity-backed deal in at least ten years with an estimated $1.5 billion in proceeds.
