By Tess Stynes
Venture capital-backed initial public offerings more than
doubled during the second quarter from the previous quarter and
rose 90% from a year earlier, with 21 companies raising a combined
$2.2 billion during their stock-market debuts, driven by the
highest number of biotech venture-backed IPOs in nearly 13 years,
according to Thomson Reuters Corp. (TRI, TRI.T) and the National
Venture Capital Association.
During the quarter, 13 of the offerings were in the
life-sciences sector, representing 62% of the total. Biotech
offerings, at 11 deals, marked the highest level since the third
quarter of 2000, when 13 companies went public.
"We have been predicting an IPO pickup in the second half of
2013 and it appears as if this momentum has begun, driven by the
strong biotechnology offerings," said Mark Heesen, president of the
NVCA. "While on the surface, the low acquisitions volume thus far
in 2013 could appear problematic, our market intelligence is
telling us that there is a great deal of in-bound interest for
venture-backed targets, suggesting that these companies are holding
out for better pricing from strategic buyers."
Tableau Software Inc. (DATA) was the largest IPO during the
quarter, raising $292 million during its New York Stock Exchange
debut on May 16. The stock, which closed Friday at $55.42, is up
79% from its IPO price of $31 a share.
During the quarter, 14 of the companies that went public listed
with Nasdaq OMX Group Inc. (NDAQ) while six listed with NYSE
Euronext's (NYX) Big Board and one listed over the counter.
Currently, 39 venture-backed companies have IPO filings with the
Securities and Exchange Commission.
During the second quarter, 83 venture-backed
mergers-and-acquisitions deals were reported, 14 which had an
aggregate deal value of $2.4 billion, led by the
information-technology sector. This represents a 59% drop in volume
from a year earlier.
Write to Tess Stynes at Tess.Stynes@dowjones.com.
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