Defensive Sectors Continue To Dominate IPO Revival

Another week, another suite of exits by private equity (PE) firms giving a boost to the IPO pipeline (see 'PE-Backed IPOs Continue To Gain Pace', CFW, August 31 2009). However, while PE firms are evidently seeing a window of opportunity to exit investments, CFW notes that the filings so far show that certain sectors (notably healthcare) are particularly well positioned to tap investors in further offerings.In recent months we have been highlighting tentative signs of improvement in the US IPO market, arguing that one of the key factors putting upward pressure on issuance would be a move to market by private equity firms keen to capitalize on buoyant financial markets to exit certain investments.

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