IPO proceeds inthe United Statessurpassed$10 billionfor the third consecutive quarter, signaling the ongoing strength and attractiveness of the IPO market as an avenue to raise capital, according toUS IPO Watch– a quarterly and annual analysis of IPOs on U.S. stock exchanges byPwC US.

As ofJune 27, IPO proceeds in the second quarter reached$11.9 billioncompared to$5.2 billionin the second quarter of 2010 representing a 129 percent increase in total proceeds raised. The same period also witnessed an increase in IPO volume to 47 IPOs compared to 41 in the second quarter of 2010 and 32 in the first quarter of 2011. May proved to be the most active month, generating nearly half of total offerings for the second quarter, with 22 IPOs yielding$6.2 billion.

"Larger offerings are being completed and a growing number of companies are entering the pipeline – key factors that have helped contribute to three consecutive quarters where we've totaled more than$10 billionin proceeds," saidHenri Leveque, Leader of PwC's Capital Markets andAccounting AdvisoryPractice. "Despite the recent volatility in thecapital markets, we are optimistic that the IPO market will continue its resurgence and remain an important source of liquidity and capital for both domestic and foreign companies."

PwC has seen an increase in the number of companies entering theIPO registration process, with another 77 companies entering the IPO pipeline in the second quarter, an increase compared to the first quarter of 2011 when 52 companies filed for IPOs. Only one planned offering was withdrawn in the second quarter of 2011.

Year to date, there have been 79 pricings that generated$24.3 billionin proceeds, more than double the amount raised for the first half of 2010, when there were 70 IPOs that generated$9.4 billion. The ongoing strength and recovery of the IPO market in the first half of 2011 puts it on pace to eclipse the full year 2010 proceeds of$39 billion, according to PwC.

Five offerings, all of which were backed by financial sponsors, generated proceeds of over$1 billionin the first half of 2011. As a group, these five offerings raised$10.9 billion, or 45 percent, of total proceeds year to date. Two of these offerings were listed during the second quarter of 2011 –Argentina-based Arcos Dorados Holdings with$1.2 billionandNetherlands-based Yandex N.V. with$1.3 billion. These two large offerings helped increase average deal size 100 percent to$254 millionin the second quarter 2011 from$127 millionin the second quarter of 2010.

Financial sponsor-backed IPOs continued their leadership of the U.S. IPO market during the second quarter, contributing 80 percent of total value with$9.6 billionin proceeds and approximately 66 percent of volume with 31 of the quarter's 47 IPOs.

"Private equityand venture capital firms are continuing to lead the IPO market, succeeding in generating returns on their investments through new listings. There were a number of high-profile companies backed by financial sponsors that went public in the quarter. Strong interest generated by these companies is an important driver of future financial sponsor-backed deals," added Leveque.

Quarterly Snapshot: IPO Performance

A look at post-IPO performance as compared to the initial offering price revealed that on average, second quarter IPOs showed a 9 percent increase in share price on day one after pricing, and an 8 percent increase one week after pricing. Financial sponsor-backed IPOs showed an average return of 12 percent on both day one after pricing and one week after pricing – whereas corporate-backed IPOs saw an average increase of 3 percent in share price on day one after pricing, and a 2 percent increase above its IPO price one week after pricing. Technology IPOs had the highest average one day return of 16 percent, whileindustrialsector IPOs had the greatest average one week return at 17 percent. The largest one day gain in the second quarter belonged to LinkedIn, which saw its first-day stock price rise more than 100 percent. Pricing still remains a concern as demonstrated in the second quarter with 31 of the 47 IPOs pricing within and above the expected range, and 16 below the range.

"While volatile market conditions make theIPO processmore challenging, companies who are thoroughly prepared are in the best position to access the capital markets when the IPO window is open," noted PwC's Leveque. "From preparation to pricing to the days after the initial listing, there are a number of factors to consider and have in place to succeed as a public company. Increased scrutiny, and concerns about markets can be navigated successfully if potential issuers are ready for scenarios that may challenge their listings."