IPO Market Thawing in April

As both Rosetta and Bridgepoint have a small lot of shares ready to price, the hope is that demand will remain elevated.

From a broader perspective, April marks the first month since August where more than one company has gone public in the U.S. For investors looking for a strong return out of the Rosetta and Bridgepoint IPOs, it's encouraging that the only two companies to go public in the stretch between August and March have performed well.

Mead Johnson Nutrition (MJN Quote), the Evansville, Ind.-based baby-formula maker, saw a first-day return of 10.1% after it priced its IPO at $24 a share on Feb. 10. Currently, the stock has a return of 10.3%.

Mead Johnson was the only IPO in the first quarter of 2009 and the first since Bridgepoint rival Grand Canyon Education (LOPE Quote) priced its IPO in November. Grand Canyon's IPO priced at $12 and has seen a return of 24.4%.

The trading environment wasn't as kind to other IPOs that debuted in 2008. Several companies currently have a negative return since their pricing, including Verso Paper (VRS Quote), Real Goods Solar (RSOL Quote), Safe Bulkers (SB Quote), Rackspace Holding (RAX Quote) and Intrepid Potash (IPI Quote).

However, three IPOs in April may not make a lasting trend. In the last two weeks, Current Media, a San Francisco-based Internet and cable television company, optical materials manufacturer Fabrinet, and Alpharetta, Ga.-based biopharmaceutical shop Alimera Sciences have all canceled plans for IPOs, according to IPOHome.com.

Looking ahead, there don't appear to be any other IPOs on deck, either. While several companies have filed with the Securities and Exchange Commission for an initial public offering, none have given any pricing details, leaving the calendar empty for the foreseeable future.

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