Russell Investments is set to add 10 initial public offerings (IPOs) to the U.S. broad-market Russell 3000 Index and a further 22 to the rest of the world at the close of equity markets on September 30.
This total includes nine IPOs that qualify for the U.S. small-cap Russell 2000 Index; five of which are real-estate investment trusts (REITS), giving the financial services sector in the Russell 3000 a total of six of the third quarters additions. Of the other four IPOs, three are in the health care sector and one is in the technology sector. The five REITS are Cypress Sharpridge Investments, Government Properties Income, Invesco Mortgage Capital, PennyMac Mortgage and Starwood Property Trust. The last one is (Emdeon) for the U.S. large-cap Russell 1000 Index.
These 10 U.S.-based IPOs and an additional 22 outside the United States also are slated for addition to the Russell Global Index. Of the 22 ex-U.S. IPOs, seven are located in Hong Kong, three in Canada, two each in China and South Korea and one each in Brazil, India, Japan, Poland, Quatar, Singapore, Taiwan and the United Kingdom. The Russell Greater China Index accounts for 10 of the total 32 IPO additions, equalling the number of IPOs for the U.S. benchmark.
Regarding sector demarcation of the IPOs outside the United States, every sector is represented with at least two additions, except for health care, which will not see any additions.
The third-quarter total of 32 IPO additions worldwide more than doubles the total of 14 added to the global index in the second quarter of 2009.
For information on Russells IPO additions process or to see lists from a few previous quarters, go to: http://www.russell.com/Indexes/membership/Global/IPOs.asp