Take Note: IPOs Are Happening at the NYSE

By: scutler

File Under: Listed Companies

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From Scott Cutler: I hope all of you have noticed the string of successful IPOs listing recently and that all of them have listed on the NYSE. Today marks the listing of the fifth domestic IPO on the U.S. markets, SolarWinds, Inc. In the most difficult IPO market in recent memory, SolarWinds and all four of the 2009 domestic IPOs before it, have chosen to list with the world’s most diverse exchange group, NYSE Euronext.

Four of the five IPOs have one important thing in common: they are technology-enabled, growth-oriented companies. The NYSE has listed $6.3 Billion in technology company IPO proceeds since 2007; more than any other U.S. exchange. This may surprise a lot of people, but not us. Our high-tech/high-touch trading model, global media and visibility opportunities, and capital markets intelligence services are superior to our competition. We are getting the word out and the world is listening.

As if this weren't enough good news, we are happy that SolarWinds has finally broken the nine-month venture-backed IPO drought. No, that is not a typo. It was over 9 months ago that Rackpace celebrated its IPO, (also on NYSE. Is this a trend? Yes.). While venture capitalists are celebrating the listing, they are also being cautious. Not all venture-backed companies meet the criteria for a successful IPO, which I've written about here before. Remember, the market is looking for companies with three prerequisite characteristics: participation in a growing industry, business execution and market leadership. SolarWinds, DigitalGlobe, Rosetta Stone, Bridgepoint Education and Mead Johnson all met these prerequisites.

If you have ever climbed a mountain, you know that there are moments when guides need to lay rope for others to follow. I think these companies have done a good job of laying the ropes. The mountain is still a challenge, but the vista at the top is rewarding.

The NYSE has remained committed to growth companies and all IPOs throughout the recent market difficulties. We have been investing in the development of this market during the downturn, spending time with the bankers, VC/PE firms, lawyers and advisors on solutions. We worked with the NVCA on a set of recommendations that will impact the structure of the IPO market going forward. We are working with the U.S. administration and regulators on policy initiatives ranging from market structure to corporate governance to make the markets more friendly to our issuers. We are hoping to continue to be a resource and a leader and will work hard for our companies to help make them successful.