Higher returns and high profile name brand IPOs brought increasing investor interest to the IPO market this year. Capped off in December by the busiest flurry of IPOs since 1999, 2006 started off strong, got bogged down in mid year with many deals pulled, and then made a rally at year end.

Thematically, IPOs fell into two divergent categories: growth and yield. The traditional IPO growth sectors of technology and healthcare were more active than in 2005, with more venture-backed deals. With crude prices at record levels and interest rates relatively low, investors sought yield and underwriters obliged, churning out large numbers of energy and tanker partnerships geared to individuals, and REITs geared to institutions. Curiously, despite the rally in retailers in the broader stock market, there were only a handful of retail and restaurant IPOs. But those that did debut were highly sought after. [read more]