Sponsor-Backed IPOs Set To Take Centre Stage In 2010

Sponsor-backed public share offerings are likely to play a pivotal role in the US IPO market in 2010, following a strong rebound in Q409 which saw five venture capital-backed (VC) deals price during the three-month period. In total, the percentage of US IPOs backed by private equity (PE) or VC-owned companies rose to 52% during 2009, more than doubling from the 22% recorded for 2008 - according to Dealogic data. In addition, this figure represents the highest percentage level since the data collector's records began back in 1995. Possibly clearing the way for more offerings in 2010, nine of the 13 VC-backed IPOs were trading at or above their offering price at the year end, which is good news for the 28 sponsor-backed firms (representing more than US$3.75bn in targeted funds to be raised) which are currently in registration for an IPO with the SEC.

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