IPOs on Hottest Pace Since Early 2008

NEW YORK (TheStreet) -- Initial public offerings are back, with the fourth quarter of 2009 already the biggest for deals since the first quarter of 2008.

Already -- at not even the midpoint of the fourth quarter -- there have been 17 IPOs totaling $13.21 billion, according to dialogic, a firm that designs, develops and markets a software, communications and analytical products for the investment banking industry. This compares with just one IPO in the fourth quarter last year.

And there are more to come.

This week, retailers Dollar Generaland rue21 are on deck, with offerings expected to price on Thursday.

Discounter Dollar General is expected to price between $21 and $23, and to rake in roughly $750 million. And while it might seem that an IPO from a discounter would be ideal in the current environment, this may not be the case.

"We believe it is difficult for the firm to consistently generate excess returns over its cost of capital, due to the lack of product differentiation, the myriad of substitutes available and low barriers to entry in the deep-discount space," Morningstar analyst Bill Buhr wrote in a note. "The retailer faces stiff competition from other discounters, mass merchants and grocery stores, as all of them vie for a piece of consumers' shrinking pocket books."

Teen retailer rue21 is looking to generate around $115 million, with shares expected to price between $16 and $18.