2005 number of IPOs and total IPO offer amount declined from 2004In 2005 a total of 56 venture-backed IPOs raised $4.5bn, according to the Exit Poll report by Thomson Venture Economics and the National Venture Capital Association. This was a strong decline compared to both the number of IPOs (93) and the total IPO offer amount ($11bn) in 2004.
Mark Heesen, president of the NVCA, said, 'For the IPO market to improve, we need relief from certain hurdles associated with the Sarbanes Oxley Act, but we also need an investing public that is bullish on technology.
'Investors have every reason to have confidence in the venture-backed companies in registration today. Most have survived the boom and the bust, which speaks to the soundness of their business models and the strength of their discipline. They have weathered significant difficulties and understand excess and how to avoid it. Once the market begins to accept these organisations and that is reflected in their share prices, emerging companies will consider the IPO path once again,' Heesen continued.
The technology sector saw 26 venture-backed companies raise a total of $2.6bn in 2005, with the internet-specific category leading the sector with ten IPOs raising $1.3bn. The life sciences sector saw 23 companies raise a total of $1.2bn, while non-high technology had seven IPOs raise $727.6m.
The two largest IPOs of 2005, IntercontinentalExchange and OptionsXpress, were from the technology sector. As of 30 December 2005, 33 of the 56 companies were trading at or above their offering price.
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Private Equity News» By Region» North America» United States
Private Equity News» By Region» North America» United States
