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Hilton Tops Off Record IPO Year

posted 12 Dec 2013, 15:42 by Mpelembe   [ updated 12 Dec 2013, 15:43 ]


BVO - Hilton got a five-star welcome on the New York Stock Exchange at its debut- the stock traded higher on its first da raising more than $2.3 billion in one of the year's most high profile offerings- a bigger deal than the $1.8 billion raised by Twitter.

And its been a big year for new issues.

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Year to date, 214 U.S. companies have raised close to $58 billion - the most money since the tech boom back in 2000.

One thing a lot of these deals have in common - private equity money.

Matt Toole is the Director of Deals Intelligence at Thomson Reuters:


"Well if you think about it 5, 6, 7 years ago was the buyout boom now those companies are looking to- the private equity firms are looking to exit so we are seeing almost $19 billion in private equity IPO's this year. It's about a third of all volume and so that is a bit higher than previous years and it makes sense, and you are seeing some big names like Hilton, like Seaworld, like Norwegian Cruise Lines, so there's a couple of big names coming out there that is private equity backed."

Hilton is the biggest hotel deal this year, and joins a number of other hospitality companies that have hit the market this year, including Extended Stay America and Diamond Resorts. Overall the hospitality IPO group is up 25 percent this year.

Other hot sectors of 2013 include healthcare and biotech.- a trend expected to continue:


"The pipeline is building. We are seeing some strong numbers in the hi-tech space, in the consumer space. Biotech is still there. You know there is a lot of discussion around the Jobs Act and some of these companies that are able to file in a more discreet way and then all of a sudden come onto the pipeline. So it remains to be seen, but it's looking healthy for 2014."

Technology, consumer products and healthcare companies lead the 375 deals in the pipeline. Names to watch for include AMC Entertainment and Claire's, on top of the rumored coming IPO's including Square, Uber and Pinterest.