SOURCE: Hoover's

Hoover's

April 13, 2011 09:00 ET

U.S. Racks Up 166 Percent Higher Year-Over-Year Capital Gains in Hoover's Q1 2011 IPO Scorecard

Flurry of Activity in Diverse Industries Fuels Resurgence in U.S. Capital Markets

AUSTIN, TX--(Marketwire - Apr 13, 2011) - Hoover's, a D&B company and leading provider of insight and information about companies, industries and key decision makers, today announced that the capital generated by U.S. initial public offerings (IPOs) increased 166 percent in Q1 2011 compared to the same quarter a year ago.

As revealed by Hoover's IPO Scorecard, 28 companies went public in Q1 2011, injecting $12 billion into U.S. capital markets, easily outpacing the $4.5 billion raised by the same number of IPOs recorded in Q1 2010.

Seven of the 10 best-returning companies in Q1 2011 were headquartered in the U.S. China claimed the best performer overall -- antivirus software developer Qihoo 360 Technology Co., Ltd. -- however, the nation did not fare quite as well with its four other IPOs, which posted negative returns in Q1 2011.

"Only five U.S. IPOs in Q1 2011 were Chinese businesses, and these IPOs priced relatively low -- $8.45 per share on average," said Lee Simmons, editor at Hoover's. "Chinese ventures lost favor with U.S. investors in Q1 due to declining quality and increasing skepticism. When U.S. investors saw a glut of major American companies hit the market, they grabbed their wallets."

Findings from Hoover's IPO Scorecard for Q1 2011

  • Best First-Day Gain: (Qihoo 360 Technology Co. Ltd.) 104 percent
  • Worst First-Day Drop: (AcelRx Pharmaceuticals, Inc.) -31 percent
  • Three firms priced at more than $1 billion: HCA Holdings ($3.7 billion), Kinder Morgan ($2.8 billion), and Nielsen Holdings N.V. ($1.6 billion)

Best-returning Q1 U.S. IPOsOfferQ1 CloseReturn
Qihoo 360 Technology Co. Ltd.$14.50$29.59104%
Endocyte, Inc.$6.00$8.5743%
Cornerstone OnDemand, Inc.$13.00$18.2340%
Demand Media, Inc.$17.00$23.5539%
Gevo, Inc.$15.00$19.7031%
Epocrates, Inc.$16.00$19.8024%
Adecoagro S.A.$11.00$13.4823%
ServiceSource International, Inc.$10.00$12.1822%
Nielsen Holdings B.V.$23.00$27.3119%
HCA Holdings, Inc.$30.00$33.8713%

In Q1 U.S. IPO activity, no one industry prevailed. "The diversity of industries represented is testament to the strengthening consumer market," Simmons said. "Investor trust in Q1 was high enough to spur several wild card filings. Skullcandy, a company that makes ear buds and audio accessories, initially filed a $125 million IPO, and HomeAway, a website for vacation rentals, asked investors for $230 million."

The U.S. economic recovery and a return of risk appetite bode well for IPOs in Q2. "The IPO market isn't showing any signs of slowing down," Simmons said. "Activity in the second quarter should be just as busy, if not more, than the beginning of the year."

Hoover's analyzes the IPO market daily to produce its quarterly IPO Scorecard. Each IPO Scorecard includes an assortment of facts independently validated by Hoover's editors, including best- and worst-performing IPOs, biggest one-day jumps and drops in the first day of trading, and a breakdown by industry sector.

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