Initial public offerings (IPOs) took a hit in the recession with only 78 offered between the two years of 2008 and 2009. In 2010 they came back strongly with 2010 IPOs appearing in that year. However, the IPO glee was short-lived and in 2011, investors saw a decrease in IPOs with only 76 coming to light since the start of 2011. What can investors expect for IPOs in 2012? The trend shows that despite uncertainty in markets, IPOs should do quite well in 2012 with the number of IPOs increasing overall.

Potential Gains Beckon

Investors are looking for ways to profit in a chaotic market and some IPOs offer the potential for serious growth. For 2011, the crop of IPOs included such notables as LinkedIn and ZipCar. With new online ventures consistently seeking IPOs to increase their capital base, the investor can expect even more offerings in 2012. In fact, it is estimated there are at least 200 IPOs getting ready to launch in 2012, which will easily be the biggest set of IPOs seen available to investors.

What Investors Seek

Investors are looking for IPOs that can offer some substantial short-term gains or long-term stability to their portfolios. Offerings like Groupon and Yelp might be able to command a good price initially, but can have trouble down the road. Others, like Facebook and Zynga have long-term models but bring up value to price debates as investors try to understand how to accurately price new ventures. They may end up being a great buy for long-term investors, but short-term gains may not be rewarded as quickly with their purchase as other IPOs. Despite the difficulty in figuring the real value of online stocks, investors are beginning to invest more in them with a variety of strategies. IPOs offer the ability to get in on the ground floor of a new investment opportunity, although the price may or may not hold after the novelty and enthusiasm has worn off.