Administration December 12, 2002

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.
Reported by

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:

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  • 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%.

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