VC-Backed IPO Wrap: Q2 Looks Up –

Sparked by a mammoth $8.6 billion offering from Kraft Foods Inc., the IPO market sprung back to life in the second quarter, with 25 companies raising approximately $14.72 billion, or 73% more than was raised in Q1 2001.

The news was nearly as positive for Q2 venture-backed offerings, which saw its take rise 58.3% over the previous three-month period. According to preliminary figures from our VentureXpert database, eight VC-backed IPOs raised just over $1.473 billion, which is especially impressive considering that none of the companies priced in April.

Leading the way was electronic trading services firm Instinet Group Inc., which priced a $464 million IPO on May 17. The company opened trading on the Nasdaq at $14.50 per share and closed last Thursday at $17.70.

Other big winners included Peabody Energy Corp. with a $420 million IPO on May 21, Alliance Data Systems Corp. with a $156 million IPO on June 8 and Global Power Equipment Group with a $147 million IPO on May 17.

Not all the news was good for VC-backed offerings, however, as the group only comprised approximately 10% of the total IPO volume. Even with the Kraft offering removed, the figure was still less than half of Q1?s 52% mark.

Perhaps even more distressing, only seven venture-backed IPOs were filed with the SEC over the past three months, an indication that the worst may still be ahead in terms of total volume.