In the fourth quarter, 16 companies withdrew or postponed their IPO and one went effective. Another 14 companies were removed from Ernst & Young LLP's report because they sat in the pipeline for more than a year.
According to Maria Pinelli, Americas Director, Strategic Growth Markets, Ernst & Young LLP, some experts are optimistic the IPO market will open up again in the third or fourth quarter of 2009. "We're likely to see the first signs of life in the pipeline from larger companies in established industries, rather than a surge from smaller companies."
"It's important to have a long-term perspective," said Jackie Kelley, Americas IPO Leader, Ernst & Young LLP. "If companies want to position themselves to ride the first wave up as the IPO market turns around, they should start planning now for the organizational change, which can take 12-24 months."
In the fourth quarter, technology, diversified industrial products and professional firms and services lead among new issuers, with 12, seven and six companies in registration, respectively. The biotechnology sector represented the most withdrawals with seven companies exiting the pipeline.
California had the most companies in registration, with eight companies seeking to raise $855 million. Texan companies filed to raise the most capital (six companies, $1.3 billion). Nine foreign companies registered to go public in the US, including five from China (seeking to raise $505 million) and one from Hong Kong (seeking to raise $725 million).