KBW and Physicians Formula make strong debuts

NEW YORK, Nov 9 (Reuters) - Shares of KBW Inc. (KBW.N: Quote,
Profile, Research) and Physicians Formula Holdings Inc. (FACE.O:
Quote, Profile, Research) rose 30 percent and 24 percent respectively in
their debuts on Thursday, indicating continued strength in the U.S. initial
public offering market.

Canadian Solar Inc. (CSIQ.O: Quote, Profile, Research), which at plants
in China makes solar modules that convert sunlight into electricity, also
rose as high as 11.5 percent on its first day while shares of OneBeacon
Insurance Group Ltd. (OB.N: Quote, Profile, Research), a property and
casualty insurance writer, rose as much as 5 percent.

After a summer of delays and withdrawals, Thursday's IPOs added to
new issuance momentum that has been building in the past two months.

Since the start of September, 51 floats worth $10 billion have gained an
average of 11.7 percent on their first day, including four of the year's top
five first-day gainers. IPOs between January and August rose an
average of 7.1 percent on their first day.

Broader market gains, including new highs for the Dow Jones industrial
average <.DJI> and a Nasdaq <.IXIC> resurgence, have increased
investors' appetite for new offers, said Francis Gaskins, an
independent IPO analyst and president of IPO Desktop.

The successful floats work within different sectors but do have something
in common, he said.

"I don't think the sector matters," Gaskins said. "What matters is the top
line revenue growth."

Shares of KBW, parent of financial services investment bank Keefe,
Bruyette & Woods, jumped as high as $27.38 on Thursday on the New
York Stock Exchange, joining a series of securities companies to go
public in the past two years amid a boom in trading activity and corporate mergers and acquisitions

Thomas Weisel Partners Group Inc. (TWPG.O: Quote, Profile,
Research), specializing in technology stocks, soared 33 percent in its
February debut, fell amid the summer slowdown, but rose on Thursday
to $20.62.

Cowen Group Inc. (COWN.O: Quote, Profile, Research), spun off by
French bank Societe Generale (SOGN.PA: Quote, Profile, Research),
has remained below its $16 offering price.

But boutique investment bank Evercore Partners Inc. (EVR.N: Quote,
Profile, Research), whose co-chief executive is former U.S. deputy
Treasury Secretary Roger Altman, jumped 18 percent in its August
debut.

Evercore trades at about 35 times annualized earnings while KBW
trades at 22 times earnings with a $27 share price.

New York-based KBW, a leading underwriter and market maker to the
financial services industry, floated 6.8 million shares, which was
increased from an initial 6.52 million, and raised $163.2 million
Wednesday.

Shares of cosmetics maker Physicians Formula rose as high as $21 on
the Nasdaq on Thursday, a day after the offer of 7.5 million shares raised
$127.5 million.

Physicians Formula, which develops cosmetics that address skin
imperfection, among others, follows the successful September float of
Bare Escentuals Inc. (BARE.O: Quote, Profile, Research), which
opened up 27 percent at $28 and traded on Thursday at $30.36.

Cosmetics maker and marketer Bare Escentuals trades at 53 times
annualized earnings while Physicians Formula trades at about 33 times
earnings.

Canadian Solar, incorporated in Canada but with plants in China,
continues a string of successful offerings from Chinese companies.

New Oriental Education & Technology Group Inc.'s (EDU.N: Quote,
Profile, Research) and Mindray Medical International Ltd. (MR.N: Quote,
Profile, Research), a Chinese medical device company, rose 54 percent
and 31 percent in September. Home Inns & Hotel Management Inc.
(HMIN.O: Quote, Profile, Research), which operates 82 budget hotels in
China, posted a 72 percent first-day climb