IPO Market Opens Strong In 2013

The US IPO market produced seven IPOs in January 2013—the busiest start to the year since 2006. Buoyed by the $2.2 billion IPO of Pfizer’s animal health unit Zoetis, gross proceeds in January were $3.3 billion—the highest January figure since 2000. The month included IPOs by well-established companies with proven revenue and profitability as well as a trio of biotech offerings.

The average first-day gain for January’s IPOs was 18% compared to 16% for all IPOs in 2012. Norwegian Cruise Line, Bright Horizons and Zoetis enjoyed first-day gains of 30%, 29% and 19%, respectively—these gains were all the more striking because each offering was priced above the range. There were no “broken” IPOs (IPOs whose stock closes below the offering price on their opening day) in the month.