The nursery rhyme tells us Wednesday’s child is full of woe. Interestingly, Wall Street’s investment bankers plan to price all eight of their IPOs on Wednesday evening.
Investment bankers reach into a hot industrial sector this week to price a single deal. But the handicappers at the IPO Downs don’t see an opening-day moonshot in the cards.
Wall Street is a numbers game. Stocks are quoted in numbers, their indexes are defined by numbers and the IPO traffic is calculated in numbers. By the end of the first quarter of 2010, the new-issues numbers confirm the trend cited by the financial media: IPOs are back in town.
Technology IPOs duck through the ropes to headline this week’s card. They could produce some heavyweight excitement, according to investment professionals.
This week’s IPO calendar has a few deuces -– two out of China, two technology companies and two carryovers from last week. It’s also the first week of spring and it could be a sign of better things to come in the IPO market. All told, bankers have lined up seven new issues to make their public debuts for the week of March 22nd. That’s the busiest weekly calendar since December 2009.
Last week was nothing to write home about and this week looks to be about the same. However, if you had been watching the U.S. Securities and Exchange Commission’s filing window, you’ll see the IPO pipeline building and with some exciting names.
The much maligned IPO market is doing much better than people think. As of Friday’s close, March 5, a total of 75 percent of this year’s offerings had closed above their initial offering prices. That’s right -– three out of every four IPOs had closed above their offering prices this year. And they have outperformed the Nasdaq Composite Index by nearly 64 percent.
Friday’s close rang down the financial curtain on 2010’s first two months. There was no barroom bragging in any of Wall Street’s watering holes, and the IPO market was no standout either.
This week, the IPO calendar closes out February with two deals. Actually, the month ends with just one traditional IPO as the other is a closed-end investment trust. Nevertheless, investment professionals don’t look for either to produce an opening-day moonshot.
This year’s stock market topped out in mid-January, about the same time bankers unveiled the 2010 IPO calendar. The results for both over the last month have not been good. The major stock market indexes lost anywhere from 5.8 percent to 6.5 percent and IPOs have been floundering.