We all know it’s been a pretty rough stretch for the IPO market. Even the prospects of a strong Facebook debut are being called into question. Well, there’s still some hope. With a flurry of S-1s filed last Friday from the energy sector, it isn’t hard to see which industry is showing a bit of confidence.
1. Three energy companies filed on Friday: it wasn’t enough to start a #filefriday meme on Twitter, but the action was nonetheless robust. Of the six companies filing at the end of last week, half were from the energy sector. Could energy wind up stealing momentum from consumer goods?
2. A strong year so far: the filings last week followed 17 IPOs priced this year in the energy sector. That’s only one behind the total for all of last year.
3. The pipeline is full: in the US, 16 energy companies are primed to launch into the public capital markets, with proceeds expected to reach $4 bn in aggregate.
4. Best in years: if these companies get to market, 2011 will be the most active IPO year in the energy sector since 2006, when 34 companies went public (32 did in 2007). We know that the IPO market as a whole was supposed to be the best since 2007 this year – for the energy sector, that could still be true.
5. Big piece of the pie: energy consists of 9 per cent of IPOs in the US pipeline for the rest of this year – not at all a trivial portion.
So, if you’ve been focused on Facebook and Groupon, you’ve been missing something big! It’s not all about social media in 2011.
Source: Renaissance Capital