IPOs Increase in 2010, But Not in Size
November 22, 2010
Aeroflex raised about $232.9 million in its IPO, selling 17.25 million shares of common stock for $13.50 apiece, the low end of its expected price range. Goldman Sachs, Credit Suisse, JP Morgan and Morgan Stanley served as the lead underwriters for the offering. Aeroflex provides microelectronic components and test and measurement equipment, and post-IPO, it continues to be backed by Veritas Capital (31.8%), Golden Gate Capital (18.5%) and Goldman Sachs (15.5%). The company's stock closed its first day trading on the NYSE under the symbol ARX even at $13.50.
61 PE-backed companies have successfully gone public since the beginning of 2009, according to the PitchBook Platform. So far this year, 35 IPOs have been completed, up from 26 for all of 2009. However, despite the increase in the number of IPOs, the amount of money being generated through the offerings has remained relatively steady. The median offering size this year has only been $143 million, compared to $148.2 million in 2009, indicating that while more companies are choosing to go public, they're not raking in more money while doing so. The difficult environment has resulted in several PE investors opting to delay IPOs or make their exits through other methods, such as sales to corporations or other PE investors. Those methods also offer PE investors the advantage of an immediate complete exit, as opposed to exiting via the public markets, which could drag on for quite a bit.