2010 Review

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January 3, 2011

2010 Global IPO Market Review and 2011 Outlook China: The New IPO Capital

The Chinese Dragon roared in 2010, blowing the US off its historic position as the worlds leader in IPOs. Record

numbers of Chinese IPOs listed in Hong Kong and the US, producing two of the five largest IPOs of all time. Due in part

to the surge in Chinese activity, the global IPO market nearly matched the previous peak of 2007. Similarly, thanks to

investor demand for strong growth outlooks, China-based companies were nearly a third of US IPO market issuers.

Although the overall US IPO market continued its recovery, without the $16 billion General Motors (GM) deal and the

record Chinese issuance, IPO volumes were less than they should have been at the current stage of our economic

recovery. However, we expect that in 2011, US IPOs will step up in activity due to recent clarity on tax rates, the Federal

Reserve's QE2 effort to push investors into the equity market and the prospects of a more business-friendly federal

government. In contrast, Chinese issuance may moderate due to government policies designed to temper inflation. Key takeaways: Global IPO proceeds* in 2010 soar to within 12% of 2007 peak levels

Aggressive activity from fast-growing Asia-Pacific and Europe rebound overwhelms US

A record number of China-based companies raise capital in the US, becoming a major IPO category

US IPO market is less active than perceived, but growth IPOs still prosper

Best US IPO returns since 2006, as the average IPO rises 25%

IPO Outlook: Chinese volume may moderate, while US small cap tech, consumer and health care accelerate

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GlobalIPOProceeds Raised NumberofGlobalIPOs

Source: RenaissanceCapital.com. *Reflects deals with gross proceeds of over US$100 million.

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Global IPO proceeds in 2010 soared to within 12% of 2007 peak levels In terms of proceeds raised, global IPOs closed within 12% of 2007 peak levels. Volume more than doubled over 2009

due to improved worldwide economic activity, particularly in Asia-Pacific, which reached record levels with 315 IPOs

accounting for $156 billion in proceeds. The $156 billion in proceeds was nearly double Asia-Pacifics prior peak, driven

by record issuance in China/Hong Kong. North America proceeds jumped 70% on the heels of GMs $16 billion IPO, which accounted for 42% of the regions total proceeds.

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Rest of World*

Aggressive activity from fast-growing emerging markets, mostly Asia, overwhelmed US issuance IPO issuance from the Asia-Pacific region particularly China, Hong Kong, India and Japan again accounted for almost

two-thirds of global capital raised. North America lost share, falling below 20% due to the surge in emerging market

activity, as well as rebounding issuance in Europe led by an anticipated thaw in private-equity issuance, large spinoffs and

privatizations in Poland. At 16% of global proceeds, North Americas share in 2010 was the lowest on record. Excluding

GM, North Americas market share would have been a paltry 10%.

Source: RenaissanceCapital.com. *Includes Europe, Latin America and Middle East/Africa.

Global IPO Market - 2009

North America21%

Asia Pacif ic64%

Rest of World*15%

Global IPO Market - 2010

North America16%

Asia Pacif ic66%

Rest of World*18%

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Helping fuel Asias record issuance were Agricultural Bank of China ($19 billion) and AIA American International

Assurance ($18 billion), two of the top five IPOs in history. Japans Dai-ichi Mutual Life Insurance ($11 billion), the 11th

largest IPO in history, was also a meaningful contributor. General Motors ($16 billion), among the top five IPOs in US

history and seventh-largest globally, was the only US company in 2010 to rank among the ten largest global IPOs.

A record number of China-based companies raised capital in the US, becoming a major IPO category In the US, Chinese companies comprised 27% of deal volume, compared with 18% in 2009 and 13% in 2008. Most

Chinese IPOs relating to infrastructure and basic materials were routed to the Hong Kong Exchange, whereas most

growth companies opted for a US listing. Catering to US investors demand for fast-growing companies, these US-traded

Chinese IPOs tended to be relatively new companies, some barely past the start-up phase. In some cases, US investors

were willing to suspend some of the standards of critical mass and corporate governance that apply to US small cap

growth companies because of the prospects for extremely rapid growth offered by these Chinese companies.

2003 2004 2005 2006 2007 2008 2009 2010

NumberofDeals 2 12 9 9 29 4 11 41

%ofUSIPOs 2.9% 5.6% 4.7% 4.6% 13.6% 12.9% 17.5% 26.6%

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Source: RenaissanceCapital.com Note: US market statistics include IPOs with minimum $50mm market cap and exclude warrants. Also excludes SPACs.

Nevertheless, as the year progressed and the number of small cap Chinese IPOs accelerated, US investors became

discriminating. As a result, some Chinese companies, such as HiSoft Technology (HSFT), Chinas second largest

provider of outsourced IT services, produced triple-digit returns, and others, such as China Hydroelectric (CHC), which

operates small hydro plants in China, were among the biggest losers. Six of the ten worst first-day returns were Chinese

IPOs, all of which priced in the final quarter of the year.

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Despite headlines, US IPO market was less active than perceived The US IPO market rebounded strongly in 2010 in terms of proceeds raised and deal flow. However, a closer

investigation reveals a number of opposing trends. Deal size shrank due to larger numbers of smaller companies and

valuation pushback on larger ones. Venture-backed firms finally reemerged on the IPO scene in 2010, while private

equity sponsors found few takers. As a result, many PE-backed IPOs were significantly downsized or elected to push out

their IPOs to 2011, skewing the market to much smaller deal sizes. Excluding General Motors, the average US IPO deal

size dropped to $150 million, the lowest level in more than a decade.

Summary IPO Data - US IPOs 2003 2004 2005 2006 2007 2008* 2009 2010**No. of Deals 70 216 192 196 214 31 63 154Total Proceeds (billions) $15.4 $42.8 $33.7 $42.2 $49.0 $24.5 $21.9 $38.7Average Deal Size (millions) $220 $198 $176 $215 $229 $790 $348 $251Median Deal Size (millions) $120 $94 $109 $116 $120 $157 $155 $108

Source: RenaissanceCapital.com Note: Excludes 1, 21, 24, 58, 12 and 5 SPACs in 2004, 2005, 2006, 2007, 2008 and 2010, respectively. * Excluding Visa, 2008 proceeds and average deal size would have been $10.1 billion and $241 million, respectively. ** Excluding General Motors, 2010 proceeds and average deal size would have been $22.9 billion and $150 million, respectively.

China bolstered US IPO activity, particularly in the fourth quarter when Chinese IPOs accounted for almost 40% of US-

listed deal flow and produced the best first-day return in more than five years with the debut of Chinas leading online

video portal Youku.com (YOKU; up 161%). The US IPO market also saw a noticeable rebound in fast-growing tech and

consumer IPOs, with issuance from these two key growth sectors approaching 2004-2007 levels. This group included

software companies RealPage (RP), Qlik Technologies (QLIK) and Broadsoft (BSFT), Internet/media firms Quinstreet

(QNST), ReachLocal (RLOC) and Mediamind (MDMD), and retail/consumer concepts Vera Bradley (VRA), The Fresh

Market (TFM), Bravo Brio (BBRG) and SodaStream (SODA).

The success of these companies underscored the strong demand from US investors for fundamental growth. However,

notably absent were healthcare services and device companies due to uncertainties stemming from US policy reform. In

fact, healthcare IPO activity was more than 50% below prior cycle levels, with the bulk of deal flow concentrated among

cash-hungry biotechs.

In addition to growth companies, there was also activity from a handful of cyclical and financial companies. This

broadening diversity of domestic IPOs may be an indication that investors are becoming more comfortable with the US

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economic rebound. Two automakers, GM and Telsa (TSLA), had successful debuts and showed investor appetite for two

manufacturing companies at opposite ends of the spectrum in terms of size, growth profile and track record.

In summary, the US IPO market remained highly deal-specific and is still in the process of clawing its way back to

normalcy. At this stage of the economic recovery, the IPO market should be closer to the 200-deal level, as was the case

in the 2004-2007 period. The more subdued IPO recovery was the result of a lower number of traditional growth issuers,

a development that we expect to reverse in 2011. Eventual clarity on industry regulation should be a catalyst for

increased healthcare sector activity, while ever-maturing venture capital portfolios and investors increasing appetite for

growth should draw out more IPOs from the technology, internet and cleantech sectors.

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Technology/Communications Healthcare Consumer

Source: RenaissanceCapital.com

US IPO returns reach a four-year high; average IPO rises 25% Among the most impressive highlights of 2010s US IPO market was performance. While more than three quarters of

IPOs were trading below their offer prices early in the year, by year-end, the average overall IPO return reached 25%,

marking the best returns for US IPOs since 2006. The average first day pop was a healthy 10%, while aftermarket returns

were stronger at 15%. Helping to give aftermarket returns a boost was the significant pricing pressure faced by many

private equity-backed IPOs, of which 70% priced below the expected midpoint. Overall, 40% of all US IPOs priced below

the range proposed in the initial filing, well above the 27% post-tech bubble average.

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Annual IPO Returns - US IPOs 2003 2004 2005 2006 2007 2008 2009 2010Total Return 30% 35% 19% 26% 13% -33% 16% 25%First Day Return 13% 11% 11% 11% 13% 3% 7% 10%Aftermarket Return 11% 21% 6% 12% 1% -36% 8% 15%FTSE Renaissance IPO Index Return 26% 33% 23% 18% 15% -52% 55% 20%

% IPOs with NEGATIVE first day returns 17% 19% 21% 21% 25% 58% 32% 33%

% Priced above range 30% 18% 20% 21% 23% 7% 17% 13%% Priced within range 57% 45% 52% 49% 55% 65% 56% 47%% Priced below range 13% 36% 29% 30% 22% 28% 27% 40%


All performance data excludes SPACs. Total return based on offer price through 12/31. Aftermarket return based on first day close through 12/31. 2011 IPO Outlook: China growth moderates, US picks up In the US, we expect to see an extension of many of the themes that emerged in 2010, including more Chinese ADRs,

revived venture activity and an increased focus on the traditional growth IPO. Though only four of the 132 companies

currently in the US pipeline are Chinese ADRs, this is not a meaningful indicator of future activity given the US filing

process for Chinese issuers, which typically submit private filings well ahead of their public IPO submission. There are

currently 38 venture-backed IPOs in the US pipeline that are concentrated around software, subscription services,

Internet/media, biotech and diagnostics.

Notable Venture-Backed IPOs in the US Pipeline Company Business Description Industry LTM Sales ($ mil) Kayak Software Online platform that allows users to compare travel information. Consumer $154 Tudou Holdings Leading video website operator in China. Technology $17 Cornerstone OnDemand On-demand talent management platform. Technology $41 Demand Media Provides online content and domain name registration services. Technology $235 InvenSense Provides motion sensors, software and chips for consumer electronics. Technology $80 Tripwire Provides software solutions to protect physical and virtual IT infrastructure. Technology $85 GameFly Largest online video game rental subscription service in the US. Consumer $106 Force10 Networks Provides IP-based networking software and equipment for data centers. Technology $254 ZipCar Operates car sharing services network in North America and the UK. Consumer $170 Aurora Diagnostics Diagnostics company focusing on the anatomic pathology market. Healthcare $200 Source: RenaissanceCapital.com

Outside the US, ongoing economic expansion in emerging markets should continue to fuel strong IPO issuance in Brazil,

India and China. Hong Kong is poised to attract more international issuers, such as Italian designer Prada, looking for a

foothold in China, though PRC effort to put the brakes on torrid growth could slow the momentum in Chinas hot IPO

market. Europe should benefit from pent-up IPO activity across more mature markets, as well as more privatizations

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across eastern European countries such as Poland, Turkey and Czech Republic. Russia also stands to be a source of

several large pending IPOs, from major electric utility EuroSibEnergio to fast-growing search engine Yandex, with most

expected to seek listings in Hong Kong and London.

Large private equity-backed IPOs should see increased activity in 2011, both in the US and globally, as financial sponsors

look to exit investments made during the 2005-2007 LBO boom. However, as shown by the postponement of Caesars

Entertainment's $500 million IPO, investors will take issue with significant leverage and push back hard on valuation. In

addition to 35 PE-backed IPOs on file in the US representing upwards of $16 billion in potential proceeds, there are

dozens of private equity-backed IPOs that could pull the trigger at any time.

Notable PE-Backed IPOs in the US Pipeline Company Business Description Industry LTM Sales ($ mil) Kinder Morgan Operates 37,000 miles of pipelines and roughly 180 terminals. Energy $8,187 BankUnited FL-based savings and loan holding company. Financial $588 GNC Holdings Worldwide retailer of health and wellness products. Consumer $1,755 Spirit Airlines Low-fare airline with routes between FL, Caribbean and LatAm. Consumer $734 Skype S.A. Provides a software platform for real-time Internet communications. Technology $719 AMC Entertainment Owns or operates 380 movie theaters in the US and Canada. Consumer $2,423 Nielsen Holdings Global leader in television audience measurement Business Services $5,052 Toys R Us Leading global toy retailer operating 1,363 stores in 34 countries. Consumer $13,699 HCA Largest private hospital operator in the US. Healthcare $30,165 West Corporation Leading conferencing and call center provider. Business Services $2,376 Source: RenaissanceCapital.com

In fact, the shadow pipeline remains significantly larger than the active backlog and includes a number of high-profile

growth and private equity sponsored issuers. Facebook, LinkedIn and Zynga are all rumored to be planning IPOs. While

the timing of Facebooks debut is a heavily-contested subject, we believe at least one social networking IPO will file by

year end. It is rumored that Facebooks China counterpart (Oak Pacifics renren.com) may be gearing up for an IPO,

while there are dozens of social media companies that would be highly sought after by growth investors. Healthcare IPOs

are also likely to make a comeback as more concrete interpretations of reform come into view, and traditional retail and

energy IPOs should also see increased activity.

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Shadow US Backlog Company Industry Backing Silver Spring Networks Energy Clean tech/Smart Grid Venture Capital Fisker Automotive Capital Goods Electric Vehicles Venture Capital Groupon Technology Social Media/Networking Venture Capital Oak Pacific Interactive Technology Social Media/Networking Venture Capital LinkedIn Technology Social Media/Networking Venture Capital Facebook Technology Social Media/Networking Venture Capital Zynga Technology Social Media/Networking Venture Capital Chrysler Capital Goods - Automotive Private Equity Ally Financial (Old GMAC) Financial Retail Banking Private Equity Dunkin Brands Consumer Food & Beverage Private Equity First Data Technology Business Services Private Equity Freescale Technology Semiconductors Private Equity Hilton Worldwide Travel & Leisure Hotels Private Equity SunGard Data Technology Software & Services Private Equity Neiman Marcus Retail Fashion Private Equity Source: RenaissanceCapital.com

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YEAR END REVIEW SUMMARY DATA US IPO Trends VC-backed issuance strengthens in the US, helped by Chinas IPO surge As expected, venture-backed IPO issuance improved meaningfully over 2009, with 61 venture-backed IPOs in the US in

2010. That was up five-fold from 2009 and compares favorably to pre-financial crisis levels. With activity being stifled for

almost two years, a revival in venture-backed IPO activity was inevitable. More importantly, returns were strong,

particularly as the year progressed and investors increasingly gravitated to fundamental growth stories. However, China

played a big part in 2010s venture-backed IPO resurgence, accounting for 36% of all US-listed venture-backed issuance

(22 of 61). Excluding the Chinese venture-backed IPOs, the domestic VC activity was solid, but not quite back to normal.

The 40 US-based venture-backed IPOs fell short of the 50-70 deal levels seen in the 2004-2007 period.

2003 2004 2005 2006 2007 2008 2009 2010

Proceeds($B) $1.4 $6.0 $5.1 $6.4 $9.7 $0.6 $1.3 $6.0

Numberofdeals 19 69 56 65 86 7 12 61

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The strongest performers were technology and China. Healthcare lagged, mostly due to a handful of risky biotechs.

Technology accounted for eight of the top 11 venture-backed IPOs, with the key themes being software (Broadsoft,

RealPage, Qlik, Motricity), China IT outsourcing (HiSoft Technology, Camelot Information Systems), and Asia Internet

market leaders (Youku.com, MakeMyTrip).

Several Chinese IPOs were among the years worst performers, confirming that investors are taking a deal-specific

approach to Chinese IPOs and highlighting the overall risk profile that comes with investing in the countrys alluring

growth. Of the 10 worst performing venture-backed IPOs in 2010, six were Chinese companies and three were biotechs.

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Tough sledding for PE-backed IPOs, but pricing sensitivity leads to improved 2H10 performance While deal flow and proceeds exceeded 2009 levels, relative to expectations, IPO activity from private equity issuers was

disappointing in many respects. Completing an IPO for private-equity backed issuers often came at a painful price, with

70% of private equity-backed IPOs pricing below the expected midpoint, and many at a haircut of 20% or more.

Downpricing was most acute in the first half of the year and was concentrated among IPOs with weak growth prospects

and significant leverage.

2003 2004 2005 2006 2007 2008 2009 2010

Proceeds($B) $5.4 $12.6 $15.6 $15.4 $11.8 $1.4 $6.5 $9.6

Numberofdeals 25 63 63 56 48 5 22 38

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First day performance for private equity issuers was also poor, with an average first day pop of just 2%. The message

was clear: unless issuers offered a compelling case for top line growth and a manageable balance sheet, big valuation

haircuts were necessary to get investors to bite. Several private equity deals, such as Caesars Entertainment, pushed out

their IPO plans, or sought out debt financing as a means to give their sponsors some near-term liquidity in the hopes that

the pricing environment might prove more welcoming in 2011.

PE Pricings Pressured, Returns Improving 2003 2004 2005 2006 2007 2008 2009 2010First Day Return 9% 9% 8% 6% 10% 4% 7% 2%Aftermarket Return 20% 15% 19% 7% -3% -60% 5% 21%Total Return 29% 30% 30% 14% 7% -55% 12% 24%

% Priced Below Range 16% 44% 41% 39% 31% 40% 50% 47%Average Pricing vs. Midpoint 2% -6% -6% -5% 0% -7% -9% -11%


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LBO-exits dominate top list of largest US IPOs GM topped the list of largest IPOs this year, raising $16 billion in its record-breaking offering and claiming the #3 spot

among the largest IPOs in US history. Excluding General Motors, which was arguably LBO'd by the US government, PE

firms continued to bring the more substantial deals to market, representing seven of the ten largest IPOs in 2010. Unlike

last year, however, these IPOs shifted away from defensive sectors and toward more growth-oriented industries such as

technology, energy and financials as investor sentiment improved.

Despite GM's blockbuster offering, average deal size fell 28% from 2009 to $251 million as several high-profile buyout

firms pushed out their IPO plans, most notably Nielsen, HCA and Toys "R" Us. Of note, only five US companies raised

more than $500 million in their IPOs, well below the trailing five-year average of 13 companies.

Largest US IPOs IPO Date Company Ticker Business Description Deal Size ($ mil) Industry Return17-Nov General Motors GM The world's second largest automaker by volume. $15,774 Capital Goods 12% 15-Dec Swift Transportation SWFT Largest truckload carrier in North America. $807 Transportation 14% 14-Jul SMART Technologies SMT Global leader in interactive whiteboards. $660 Technology -44% 16-Jun Oasis Petroleum OAS Independent E&P producing oil in ND and MT. $588 Energy 94% 10-Mar Sensata Technologies ST Texas Instruments' former sensors and controls business. $569 Technology 67% 5-Aug NXP Semiconductors NXPI Diversified global semiconductor company. $476 Technology 50%

17-Nov LPL Investment Hldg. LPLA Largest independent broker/dealer in the US. $470 Financial 21% 28-Jul Chesapeake Midstream CHKM An L.P. formed by Chesapeake Energy and GIP. $446 Energy 37% 28-Jul Molycorp MCP Rare earth oxide (REO) producer. $394 Materials 256% 21-Jan Symetra Financial SYA Health, retirement, life and employee benefits insurer. $365 Financial 14%

Source: RenaissanceCapital.com Based on offer price to 12/31 closing prices

Small cap growth IPOs lead performance rankings IPO performance improved as the year progressed, with the majority of the ten best performing US IPOs coming to

market during the second half. While rare earth metals play Molycorp rose an impressive 256% due to PRC government

export controls, small cap growth companies with venture backing led the crop, accounting for six of the ten. US-based

software companies like RealPage, Broadsoft and Qlik Technologies were particularly well-received as their scalable

models and building customer base attracted interest, while plays on rapid economic growth outside the US such as

HiSoft, Youku.com and Camelot Information Systems (CIS) also posted impressive returns.

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Best Performing US IPOs IPO Date Company Ticker Business Description Deal Size ($ mil) Industry Return 28-Jul Molycorp MCP Rare earth oxide (REO) producer. $394 Materials 256% 29-Jun HiSoft Tech. HSFT China-based provider of outsourced IT and R&D services. $74 Technology 202% 11-Aug RealPage RP On demand software for rental property owners and managers. $135 Technology 181% 7-Dec Youku.com YOKU Operates China's leading internet television/online video portal. $203 Technology 174% 15-Jun Broadsoft BSFT IP-based application server software to telecom service providers. $68 Technology 165% 15-Jul Qlik Tech. QLIK Easy-to-use business intelligence software firm. $112 Technology 159% 20-Jul Camelot Info. CIS Provides ERP and financial industry IT services in China. $147 Technology 117% 24-Jun Fabrinet FN Outsourced manufacturing of optical components for OEMs. $85 Technology 115% 20-Oct Vera Bradley VRA Designs, produces and sells handbags and accessories for women. $176 Consumer 106% 16-Jun Oasis Petroleum OAS Independent E&P producing oil in North Dakota and Montana. $588 Energy 94%

Source: RenaissanceCapital.com Based on offer price to 12/31 closing prices Not all technology and China IPOs were hits By contrast, companies such as speech-assistance software provider DynaVox and interactive white board company

SMART Technologies plummeted after being forced to lower their growth outlooks as budget cuts tempered end-market

demand. Other constituents on our list of ten worst performers generally suffered from company-specific issues,

uncompelling fundamental stories or companies with particularly high risk profiles. Four of the ten were China-based,

pointing to discipline and selectivity in the IPO market as the rise in deal flow widened the range of options for investors.

Worst Performing US IPOs IPO Date Company Ticker Business Description Deal Size ($ mil) Industry Return

21-Apr DynaVox DVOX Provides speech generating devices for the disabled. $141 Technology -66% 21-Apr Mitel Networks MITL Provides IP-based telephony systems for SMBs. $147 Technology -61% 24-Jan China Hydroelectric CHC Acquires and operates small hydropower plants in China. $89 Energy -50% 8-Apr Tengion TNGN Developing neo-organs using a patient's own cells. $30 Health Care -49% 14-Jul SMART Technologies SMT Global leader in interactive whiteboards. $660 Technology -44% 4-Aug D. Medical DMED Medical device company developing insulin pumps. $11 Health Care -44% 8-Dec Bona Film Group BONA Leading distributor of domestic films in China. $100 Consumer -36% 9-Dec Sky-mobi Limited MOBI Operates China's largest mobile application store. $58 Technology -33% 25-Oct Mecox Lane Limited MCOX China-based e-commerce site for apparel & accessories. $129 Technology -33% 27-May GenMark Diagnostics GNMK Offers a molecular diagnostics testing system. $28 Health Care -32%

Source: RenaissanceCapital.com Based on offer price to 12/31 closing prices

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FTSE Renaissance IPO Composite Index outpaces major US equity indices in 2010 The FTSE Renaissance IPO Composite Index (Bloomberg: IPOS) was up 20% in 2010, outperforming both the S&P 500

(+13%) and the Russell 3000 (+15%). US IPO issuance more than doubled in 2010, and the Index saw 147 additions

(compared to 61 in the same period last year). The most noteworthy Index newcomer in 2010 was General Motors, which

became the largest Index constituent upon addition at the close of its first trading day, November 18. The 2010 IPOs that

contributed most to the Indexs positive performance were rare earth oxide producer Molycorp (+288% since its addition to

the Index), US auto maker General Motors (+8%) and E&P company Oasis Petroleum (+82%). 2009 IPOs OpenTable

(+177%), Mead Johnson Nutrition (+42%) and Hyatt Hotels (+54%) also helped returns. A detailed review of US IPO

market performance as measured by the FTSE Renaissance IPO Composite Index will be published in the first week of

January 2011.

FTSERenaissanceIPOCompositeIndex:2010Performance

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31Dec 31Jan 28Feb 31Mar 30Apr 31May 30Jun 31Jul 31Aug 30Sep 31Oct 30Nov 31Dec

FTSERenaissanceIPOCompositeIndex S&P500 Russell 3000

Source: RenaissanceCapital.com The FTSE Renaissance IPO Composite Index is comprised of a two year rolling population of IPOs that enter the Index at the end of their first trading day. All stock returns calculated from first day close.

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Global IPO Trends Emerging markets drove global IPO performance; Asia and Latin America were best performing regions Consistent with global equity indices, global IPO performance was impressive in 2010 with the average global IPO gaining

26% from offer price to December 31. The positive performance was driven by the strong returns of emerging markets

IPOs in Brazil (+40%), mainland China (+33%) and Indonesia (+29%). By contrast, the rest of the worlds IPOs gained an

average of only 20%.

12.4%

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Largest IPOs were Asian financial and energy companies, record-breaking deal sizes Asias dominance of the global IPO market in 2010 is apparent in the list of this years largest IPOs, with eight of ten

coming from the region. In addition to Agriculture Bank of Chinas $19 billion IPO breaking the record for the worlds

largest-ever initial public offering (previously held by Chinas ICBC), Samsung Life, Petronas Chemicals and Coal India

were the largest-ever IPOs in South Korea, Malaysia and India, respectively. Also making the list was the highly

anticipated IPO of US automaker General Motors, the third largest in US IPO history, and an offering by Italian green

energy firm Enel Green Power, the largest in Italy in four years. Proceeds raised by the top ten were 113% greater in

2010 than they were in 2009.

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Largest Global IPOs Company Ticker Market Country Offer Date Deal Size ($ mil) Industry Return from IPO Agricultural Bank of China 1288.HK Hong Kong 7/7/2010 $19,228 Financial 22%, 0%AIA 1299.HK Hong Kong 10/21/2010 $17,816 Financial 11%General Motors GM United States 11/17/2010 $15,774 Capital Goods 12%Dai-ichi Mutual Life Insurance 8750.JP Japan 3/23/2010 $10,986 Financial -6%Samsung Life 032830.KS South Korea 4/23/2010 $4,412 Financial -7%Petronas Chemicals Group Bhd PCHEM.MK Malaysia 11/12/2010 $4,141 Energy 6%QR National QRN.AU Australia 11/21/2010 $4,069 Transportation 8%Coal India COAL.IN India 10/25/2010 $3,490 Energy 28%Enel Green Power EGPW.IM Italy 11/1/2010 $3,155 Energy -1%China Everbright Bank 601818.CH China 8/11/2010 $2,791 Financial 28% Source: RenaissanceCapital.com.

Agricultural Bank of China was a dual listing in Hong Kong and China. Best global performers were plays on growth in Asia and economic recovery Among the top global IPO performers were Thai chemical company Indorama Ventures and Taiwanese supplier of touch-

screen technology for Apple, TPK Holdings. Indorama and TPK broke IPO droughts in their home markets as the first to

list in Thailand since May 2008 and the first to list in Taiwan since December 2007, respectively. Four US deals were also

among the top performers, including rare earth metals play Molycorp, software companies RealPage and Qlik

Technologies, and China-based Internet company Youku.com. Overall, the deals came from a variety of sectors, but

were all relatively small, with the largest raising only $394 million (21% smaller than the average 2010 deal size of $500

million).

Best Performing Global IPOs Company Ticker Market Country Offer Date Deal Size ($ mil) Industry Return from IPO Indorama Ventures IVL.TB Thailand 22-Jan $124 Materials 466%Molycorp MCP United States 28-Jul $394 Materials 256%TPK Holding Co 3673.TT Taiwan 22-Oct $200 Technology 205%Zhejiang Yasha Decoration 002375.CH China 17-Mar $247 Capital Goods 189%Suzhou Dongshan Precision 002384.CH China 1-Apr $152 Materials 187%RealPage RP United States 11-Aug $135 Technology 181%Haining China Leather Market 002344.CH China 18-Jan $205 Consumer 174%Youku.com YOKU United States 7-Dec $203 Technology 174%SuperGroup SGP.LN United Kingdom 12-Mar $182 Consumer 159%Qlik Technologies QLIK United States 15-Jul $112 Technology 159% Source: RenaissanceCapital.com

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Worst performers included technology, private equity and emerging markets Given the large number of technology IPOs in 2010, it is no surprise that investors were selective: five of this years

bottom ten performers were tech IPOs, three of which were US listings. DynaVox, which provides speech generating

devices to assist people with disabilities, and interactive whiteboard makers Promethean World and SMART

Technologies, all suffered as tight education budgets constrained school spending on new technology. Second to the US,

Malaysian IPOs also frequented the list of this years bottom performers, accounting for two of the bottom ten.

Worst Performing Global IPOs Company Ticker Market Country Offer Date Deal Size ($ mil) Industry Return from IPO Promethean World Plc* PRW.LN United Kingdom 12-Mar $281 Technology -67%DynaVox* DVOX United States 21-Apr $141 Technology -66%Mitel Networks* MITL United States 21-Apr $147 Technology -61%JCY International Bhd JCYH.MK Malaysia 10-Feb $309 Technology -60%DB Realty DBRL.IN India 5-Feb $323 Financial -58%Ningbo GQY Video & Telecom 300076.CH China 26-Apr $130 Consumer -57%SMART Technologies* SMT United States 14-Jul $660 Technology -44%Koza Altin KOZAL.TI Turkey 8-Feb $435 Materials -44%Protek PRTK.RU Russia 26-Apr $400 Health Care -42%Masterskill Education Group MASEG.MK Malaysia 4-May $223 Bus. Svcs. -41% Source: RenaissanceCapital.com *Private equity-backed.

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Renaissance Capitals Global IPO Index significantly outperforms MSCI All Country World Index (ACWI) The Renaissance Global IPO Index gained 16% in 2010, compared with the 10% return of the MSCI ACWI over the same

period. As global issuance picked up, the Index saw 327 new additions from 33 different countries, including 147 from the

US and 53 from Hong Kong. Notable 2010 additions included Australian coal rail operator QR National (QRN.AU), Indian

coal company Coal India (COAL.IN), Danish jewelry maker Pandora (PNDORA.DC) and US automaker General Motors

(GM). A full review of Global IPO market performance, including industry, regional and country level contribution analysis

will be covered in the Renaissance Global IPO Index Review, expected the first week of January 2011.

RenaissanceGlobalIPOIndex:2010Performance

16%

10%

15%

10%

5%

0%

5%

10%

15%

20%

Dec09 Jan10 Feb10 Mar10 Apr10 May10 Jun10 Jul 10 Aug10 Sep10 Oct10 Nov10 Dec10

Renaissance Global IPOIndex MSCI ACWI

Source: RenaissanceCapital.com The Renaissance Global IPO Index is comprised of a rolling two year population of global IPOs that enter the Index at the end of their first trading day. Constituents are weighted by free-float adjusted market capitalization and must have an initial float capitalization of US$50 million or greater in the U.S. and US$100 million or greater in the rest of the world to qualify for inclusion.

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Attribution Policy: The information contained herein is proprietary and copyrighted. The media is welcome to use our information and ideas, provided that the following sourcing is included: RenaissanceCapital.com

Copyright 2010 by Renaissance Capital LLC, all rights reserved. The information and opinions in this commentary were prepared by Renaissance Capital analysts. The report does not constitute an offer to buy or sell any security. Renaissance Capital and/or the IPO Plus Fund (IPOSX) may have investments in securities of companies mentioned in this report. The contents of this report may not be reproduced, stored in a retrieval system, or transmitted in any form without prior written consent.

About Renaissance Capital Renaissance Capital, founded in 1991 and headquartered in Greenwich, CT, is the global leader in providing IPO-focused institutional research and investment management services. The Firms investment management services include advising an actively managed IPO mutual fund and offering passive IPO indexes used as the basis for index and ETF products. Find out more at www.RenaissanceCapital.com.

Documents

2010 Review