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IPO Outlook: 
The Average 2006 IPO Gained 68%
Author: Yordanka Bahchevanska
123jump.com
Last Update: 2:23 PM EST January 24 2007



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The year''s 228 IPOs were worth nearly $50 billion, up 23% from 2005. The average IPO gained 68% from the offer orice during the year. For a third year in a row more than 200 companies manage to list their shares. The IPO market hit the bottom in the year 2002 with less than one hundred offerings. IPOs in the technology, bio-tech, energy and financial sector dominated the list of best of performing IPOs for the year.

 
The IPO of Commodities exchange NYMEX Holdings Inc. (NMX: chart) in November made the best first-day performance of any IPO in the past year, with a 125% gain.

NYMEX priced its IPO of 6.5 million shares, at $59 per share, above its forecast range. The deal was worth $385.5 million.

New York-based NYMEX followed the line of successful IPOs from exchanges in 2006. The NYSE Group Inc. (NYX: chart) launched its shares in March and rose 25% on their first day of trading. IntercontinentalExchange (ICE: chart) and CBOT Holdings Inc. (BOT: chart) both soared at their start.

Tech stocks played an important role in the IPO market during the past year.

The computer products provider Isilon Systems Inc. (ISLN: chart) and the computer networking equipment maker Acme Packet Inc. (APKT: chart) were the third and fourth best first day performers of the year with 77.7% and 67.5% gains, respectively.

Acme Packet raised $109 million with an IPO that priced above a forecast range. The offering of 11.47 million shares was priced at $9.50 per share, above the expected range.

Riverbed Technology Inc. (RVBD: chart) and Omrix Biopharmaceuticals Inc. (OMRI: chart) were the top gainers, rising about 230% and 220%, respectively, during the year.

Shares of computer networking company Riverbed Technology rose 48% in their firs day of trading, representing one of the best IPO openings of the year. The 8.8 million share offering raised $85.8 million, after pricing at $9.75 above the forecast.

Omrix Biopharmaceuticals priced its initial public offering of 3.4 million shares of common stock at $10.00 per share, below the forecast for $12 per share.

Medical device and a tech companies were also among the year''s worst performers. Alphatec Holdings Inc. (ATEC: chart) and Vonage Holdings Corp. (VG: chart) both fell 59% since their market debuts.

The finance sector had the most U.S. IPOs with 55 deals, worth about $9 billion.

The investment banks KBW Inc. (KBW: chart), Thomas Weisel Partners Group Inc. (TWPG: chart), Cowen Group Inc. (COWN: chart), and Evercore Partners Inc. (EVR: chart) ended the year above their offering prices after several ups and downs.

A number of Asian companies made successful U.S. IPOs during the past year.

Shares of China-based hotel chain Home Inns & Hotel Management Inc. (HMUN: chart) rose 72% on their first day of trading.

Home Inns raised more than $109 million with an offering of 7.9 million American Depositary Shares priced at $13.80 each, well above the forecast range.
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