Quality Characterizes 2001 IPO Market

Companies going to the market this year with an IPO enjoyed a rise in their stock price compared to last year's fall, survey says.

According to the research firm, only 87 US companies floated their shares this year, in deals worth a total of $38.5 billion – with a sharp increase in the number of firms with positive income streams, compared to the fly-by-nighters that characterized the tech-boom in 1999 and 2000.

Dealogic data shows that in 2001:

  • Goldman Sachs Group brought 15 companies to market in 2001, acting as lead manager on deals that accounted for $12.87 billion of the total IPO dollar value, with new issues rising 13.15% on average
  • Morgan Stanley floated eight deals, accounting for $8.9 billion of the total
  • Credit Suisse First Boston (CSFB) brought 12 deals to market, worth $6.1 billion, with shares rising by 25% on average.

According to Reuters, of the top 10 IPO managers, seven watched their IPOs gain this year, outperforming major indices such as:

  • the S&P 500, which fell by 13.7%
  • the Dow Jones Industrial Average, which fell 7.4%
  • the Nasdaq composite index, which lost 22.3%.