Ebb & Flow

Last week saw a quartet of U.S. companies update their S-1 filings. Three of the four are seeking valuations north of the average $229 million mark for U.S. IPOs in this window. Bankers polled by Ebb & Flow think the loftier hopes reflect the strong performance of the 2006 IPO basket, which was up more than 40% last year. That performance is bringing new investors into the space, although bankers still aren’t seeing a flood of momentum investors.

Stelios Papadopoulos, retired vice chairman of Cowen,agreed that performance leads to increased interest. "Nothing is better for IPOs than recent deals doing well," he told Ebb & Flow. "In aggregate, the 2006 IPOs are up significantly and that should bode well about investor appetite for additional deals."...