Seventy-nine companies remained in the IPO pipeline by the end of the third quarter (30 September, 2008), according to the quarterly Ernst & Young US IPO Pipeline Report. Though this is slightly less than the 80 companies at the end of the second quarter (30 June, 2008), the numbers reflect 29 new registrations in the third quarter.

"Though the pipeline has virtually maintained its level from the second quarter, only four companies successfully went public last quarter," said Maria Pinelli, Americas Director, Strategic Growth Markets, Ernst & Young LLP. "Global IPO activity fell to its lowest level since 2003. Companies are clearly waiting for the market to open up. In the meantime, private equity and other strategic partners are looking to companies in the pipeline as targets for possible investments, mergers and acquisition opportunities."

Removals from the pipeline in the third quarter included 19 companies that sat in registration for more than a year, seven companies that withdrew or postponed their IPO, and four effective IPOs. The second quarter saw 12 companies removed after a year, 19 withdrawals or
postponements, and nine effective IPOs.

Significant turnover in registrants led to an increase in the total dollars in registration. Companies were seeking to raise a total of $17.6 billion at the end of Q3, compared to $15.5 billion in Q2 and $17.3 billion at the end of the first quarter.

According to Jackie Kelley, Americas IPO Leader, Ernst & Young LLP, companies no longer risk a negative image by sitting in the pipeline. "At one time, a company that didn't navigate through the registration process quickly might have been scrutinized," said Kelley. "Now, sitting in the pipeline and waiting for a window of opportunity is seen as a reasonable strategy for a strong company. Many are exploring their options for growth in a tough market."

Technology (19 companies) and biotechnology (11 companies) continue to be the leading sectors in the current pipeline, though these two industries also represented five of the six withdrawals. Technology also seeks to raise the most of any sector with $3.2 billion.

Californian companies remained the most active with 15 filings in registration at Q3 2008, representing 19% of all IPO registrants. New York registrants sought to raise the highest amount of capital, totaling $2.1 billion, with only five filings in registration, representing 12% of IPO capital sought this quarter.