Average Returns Rebound On US IPO Debuts

Not only have the number of US IPOs and follow-on listings rebounded to their highest level since 2006, but average 1-day returns for debutants have also returned to pre-downturn peaks. With IPOs performing strong on their trading debuts we expect to see increasing numbers of firms and investors alike being drawn into an IPO play in 2010. Until the recent correction in equity markets, growing numbers of firms anticipating an impending increase in risk appetite on the part of investors have been joining the IPO renaissance in the US. In 2010 to-date, there have been 221 IPOs and follow-ons, higher than number of listings in the 2008 y-t-d and 2009 y-t-d combined - according to data provider Dealogic.

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