July 4th spells holiday in the U.S. capital markets. Then Wall Street gets back to work the next day, if it is not on a weekend. But the IPO calendar has an extended vacation.
The IPO market closed out 2012’s first half with a bang. On Friday – the final trading day of the six-month period – ServiceNow (NOW), a cloud-computer company, scored a gain of 36.7 percent in its debut on the New York Stock Exchange. (More on that later.) ServiceNow was one of four IPOs to hit the launching pad during the final week of June. All finished in the winner’s circle – a fitting coda just before the IPO market’s Fourth of July break.
With one eye on the stock market and the other on hope, this week’s IPO calendar has four deals on its launching pad. The IPO experts had not expected any movement until after the July 4th break, and they still might be right.
It’s always a good idea to read the fine print in a contract, even if it’s so thin that it looks like a straight line. And it’s a good idea to read an IPO’s “red herring.” One will find valuable information within its pages.
The Facebook (FB) IPO came to town on Friday with the all the hype of a three-ring circus. It left town at the closing bell, looking like the circus grounds after the show was over.
Moonshots and blockbusters conjure up excitement in IPO Valley. An IPO moonshot is an opening-day gain of 100 percent or more, while a blockbuster is an offering that aims to raise $1 billion or more. Facebook (FB-proposed) is a blockbuster. It remains to be seen if it will be a moonshot.