At first glance, this week’s calendar of eight IPOs looks to be bountiful. But on closer inspection, it isn’t.
Last week’s stock market was a train wreck that cast a shadow across the IPO market. But it did not stop the new-issue traffic. Nine deals were priced last week, raising $1.17 billion. This week’s calendar looks to price nine more IPOs that expect to raise $2 billion.
Traffic at the IPO window has been brisk at the U.S. Securities and Exchange Commission since the Labor Day break. Over the last five weeks, 43 companies filed plans to go public with bankers looking to raise $6.1 billion; 51 companies filed updated amendments for deals aiming to raise $34.3 billion, and 27 IPOs were priced, which raised $30.4 billion. And we are just getting into October.
October is known for ghosts, goblins, stock market crashes (1929 and 1987) and a busier-than-average IPO market. This week’s calendar, which includes the first three days of October, is pumped up like a pumpkin on steroids, with 14 IPOs and bankers expecting to raise over $3.3 billion. That’s above average when compared with the recent past.
The monstrous Alibaba Group Holding (BABA) IPO offering of $21.8 billion and its explosive opening-day performance (priced at $68 per share and closed at $93.89) did not suck the life out of the new-issues market. This week’s calendar lists 12 initial public offerings with bankers expecting to raise about $6.9 billion.September 21, 2014 Read More