Preqin: IPO Activity on the Uptick With PE, VC

IPO activity has picked up in October 2012, with 42 private equity and venture capital-backed companies currently in the IPO pipeline.

(November 7, 2012) — There are currently 42 private equity- and venture capital-backed companies globally set to list in the coming weeks, seeking to raise $8.4 billion in public offerings, Preqin’s initial public offering (IPO) pipeline data reveals.

Twenty-four of the 42 companies are buyout-backed, and a further 18 VC-backed companies have currently filed for an IPO.

According to Preqin’s findings, there are currently 31 North America-based PE- and VC-backed companies in the IPO pipeline, seeking to raise $6.1 billion in listings.

“We are only in the opening weeks of Q4 2012, yet the $4 billion raised from 19 PE- and VC-backed public offerings has already provided an indication that this quarter looks set to eclipse the lows witnessed in Q3 2012, which saw the lowest levels of PE- and VC-backed IPO activity since 2009,” according to Manuel Carvalho, Preqin’s manager of private equity deals.

Furthermore, according to Preqin, between January and October, North America-based PE- and VC-backed IPOs accounted for 61% of the number and 64% of the value of public offerings globally. “This is a marked increased in the prominence of North American IPOs, which since 2009 have typically accounted for less than half of global PE- backed IPO activity,” Preqin stated in a release.

Carvalho concluded by noting that improved market conditions have led to a wave of IPOs in October of this year. He asserted that while nothing is guaranteed in the IPO pipeline, if public market conditions (particularly in the US) remain solid in the coming weeks, then Q4 2012 could likely witness continued exit activity via the public markets for PE- and VC-backed companies.

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