The market for initial public offerings is still difficult to access for start-ups, but there are signs the window finally may be opening, our CEO Duncan Niederauer and U.S. Listings chief Scott Cutler told a group of reporters in our Palo Alto, Calif. office yesterday
From the Wall Street Journal's Venture Capital Dispatch blog
“I’ve seen signs of the window finally opening,” Niederauer said. “That’s partly attributable to the tone of the market being better.”
Volatility in the market has also dropped, which makes pricing IPOs easier, said Scott Cutler, executive vice president of the NYSE’s global corporate client group.
However, companies still need to meet certain criteria to have success in an IPO, including being in a growth industry, having a dominant and unique position in that market, and a “realistic” view of their own valuation, Niederauer said.
The last venture-backed IPO was Rackspace US Inc. However, there have been two recent non-VC-backed IPOs on the NYSE: Rosetta Stone Ltd. and Bridgepoint Education Inc.
The NYSE expects two IPOs soon, including SolarWinds Inc., which last month announced plans to sell 12.1 million shares at an estimated price range of $9.50 to $11.50 a share, putting it in line to possibly be the first venture-backed IPO since Rackspace.
The other expected to soon list on the NYSE is DigitalGlobe Inc. Competing to list first is venture-backed OpenTable Inc., which plans to debut on the Nasdaq.
The same post also discusses:
-- How NYSE and NYSE Amex are become destinations for VC-backed IPOs.
-- Companies' concerns about regulation making it more difficult to access public markets.
-- NYSE looking to accounting firms to help make it less expensive for companies to go public.
-- And more.
Happy Friday, folks. I know, I know. I'm sorry. I've fallen off the beam here. Will try to get back to blogging so frequently that you beg me to stop. In the meantime, have a great weekend
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