With one eye on the stock market and the other on the U.S. Securities and Exchange Commission’s filing window, the IPO calendar sits in wait for 2013’s second half to begin.
The IPO market closed out the year’s first half with blazing guns. In June’s final week, bankers priced 11 IPOs. And there was more. On Friday, the last trading day of the month, the Street witnessed a rare event – an opening-day IPO moonshot. That’s when an IPO explodes for a gain of 100 percent or more. What a way to head into the traditional July 4th holiday!
With one eye on the ticker tape and the other on Washington, D.C., the IPO market cruises into June’s final week. It has an ambitious calendar of nearly a dozen offerings in the first full trading week of summer. And it’s looking at what could be an interesting stock market.
June’s IPO market is busting out all over. Eleven companies filed plans to go public last week; another 11 filed updated amendments, and eight of those 11 jumped on the IPO calendar with pricing dates. This week, six companies expect to price their IPOs. A year ago, the June 2012 calendar produced only four IPOs.
The merry month of May produced a record number of IPOs. In June, the talk often turns to the twilight zone of “the summer doldrums.” In past years, though, the summer months have proven to be anything but dull for the IPO market.
The legendary mountain man who roamed the Rocky Mountains in the early to mid-1800s lived by his wits and by reading the signs of nature. The hoot of an owl, the rustle of leaves, the color of the sky all told him something – much like reading the preliminary prospectuses in today’s IPO market. This week’s calendar tells us something.
Financial reporters recently have asked one question so often that it almost sounds like a broken record: “Has the IPO market dried up?” The answer is found in the numbers. By mid-May, this month’s IPO headcount stood at 21 deals. If you add in this week’s traffic, May is on track to be the busiest IPO month in five-and-a-half years.
Investors are hoping for better returns from this week’s IPO calendar than they got from last week’s offerings. What happened was classic Wall Street. Companies raised billions of dollars. Their bankers pocketed millions and investors left with pennies. Before getting into last week, let’s look to the rainbow and this week’s IPO calendar.
This week, Wall Street is expected to produce another billion dollars in IPO offerings. Actually, it is over $2 billion, but here’s a surprise. This year is playing catch-up to last year’s the IPO traffic.