In 2001, there were only 91 IPOs with gross proceeds of $41.25 billion, compared to 446 IPOs raising $108.15 billion in 2000 and 537 IPOs raising $95.33 billion in 1999. Average deal size jumped to $453.3 million in 2001 from $242.5 million in 2000 and from $177.5 million in 1999, as offerings by more mature companies supplanted start-up company IPOs.
Overall, the year produced seven billion-dollar IPOs by U.S. companies compared to six billion-dollar IPOs in 2000 – a year with more than four times as many offerings. As a result, average U.S. deal size increased from $163.6 million in 2000 to $418.1 million in 2001. In 1999, with numerous start-up companies going public, average U.S. deal size was only $128.4 million.
|Month||Total||Proceeds ($ millions)|
|First Quarter 2001||20||8,213.1|
|Second Quarter 2001||29||17,858.3|
|Third Quarter 2001||13||3,014.0|
|Fourth Quarter 2001||29||12,164.2|
Only four of the quarter’s 29 offerings ended the year below their offer price and seven had gains of over 50%. The two most successful offerings of the quarter, based on year-end gains, were semiconductor companies Magma Design Automation (up 133%) and Nassda Corporation (up 104%). The fourth quarter also saw a large number of offerings by health care and medical related companies – 13 offerings with an average quarter end gain of 38%.
|Company||IPO Date||IPO Price ($)||12/31/01 Price ($)||Change|
|Magma Design Automation, Inc.||11/19/01||13.00||30.28||133%|
|Monolithic System Technology, Inc.||6/28/01||10.00||20.60||106%|
|Williams Energy Partners L.P.||2/5/01||21.50||41.80||94%|
|Dr. Reddy's Laboratories Limited||4/11/01||10.04||18.95||89%|
|PDF Solutions, Inc.||7/26/01||12.00||21.00||75%|
|Willis-Group Holdings Limited||6/11/01||13.50||23.55||74%|
|Odyssey Healthcare, Inc.||10/30/01||15.00||25.94||73%|
By historical standards, the high-flying IPO market of 1999 and early 2000 was as anomalous as the slumbering IPO market of 2001. Many factors will determine whether 2002 marks a return to more normal IPO conditions.
David A. Westenberg