Resilient IPO Market Withstands Global Sell-Off: 2Q10 Global Review

By Renaissance Capital IPO Research: Three months removed from a dreadful 2011, the global IPO market struggled to get back on track in 1Q12. Global IPO proceeds declined 69% year-over-year to $11.4 billion and deal activity fell 53%. Despite this weak activity, the IPO market made progress in the first quarter as strong overall returns helped facilitate growing investor confidence in the asset class and as US deal activity picked up.

By Renaissance Capital IPO Research: A late summer lull combined with persistent market volatility led to a steep decline in global IPO activity in the third quarter, making it the least active quarter of global issuance since 3Q09. Deal flow slowed to a trickle by mid-August, with 72% of total proceeds raised during the first six weeks of the quarter.

Renaissance Capital IPO Research submits: Global IPO issuance continued at stable levels in the third quarter, with China-based companies debuting in Hong Kong, Shanghai and the US at a greater rate than US-based issuers.

Renaissance Capital IPO Research submits: The Chinese Dragon roared in 2010, blowing the US off its historic position as the world’s leader in IPOs. Record numbers of Chinese IPOs listed in Hong Kong and the US, producing two of the five largest IPOs of all time. Due in part to the surge in Chinese activity, the global IPO market nearly matched the previous peak of 2007.

Renaissance Capital IPO Research submits: The four deals that priced during the week of July 12 included the largest US IPO of 2010, and two of year's top ten first-day performers.

Renaissance Capital IPO Research submits: Sensing vulnerability among companies needing to raise cash in the public market, IPO market vigilantes began pushing back on new issue valuations in late 2009, with the pressure increasing sharply in 2010.

Renaissance Capital IPO Research submits: Sky-mobi Limited, a mobile application store in China with a leading 50% share and over 479 million users, announced terms for its IPO last Friday. The Zhejiang, China-based company plans to raise $65 million by selling 7,250,000 ADSs at a price range of $8 to $10 per ADS. At the mid-point of the proposed range, Sky-mobi Limited will command a fully diluted market capitalization just shy of $300 million.

Renaissance Capital IPO Research submits: Campus Crest Communities (CCG), a self-managed REIT focused on high-quality student housing properties, plans to raise $383 million by offering 28.3 million shares at a price range of $12.50-$14.50. At the mid-point of the proposed range, Campus Crest will command a market value of $401 million.