Wall Street is bracing for an end-of-the-year flurry of IPOs before the window closes for 2014. This week’s calendar lists 12 IPOs, with 10 expected to trade on Thursday and Friday.
December brings us the holidays, anticipation of the New Year and a short IPO calendar. Unlike Santa’s workshop, the IPO production line shuts down around the middle of the month.
Over the past few years, the Thanksgiving holiday has brought the IPO calendar to nearly a standstill. This year, the turkey time warp looks pretty much the same. It’s a week with only four trading days. In reality, scores of Wall St pros will be out of the office from Wednesday onward, heading over the rivers and through the air to Grandma’s house or some more exotic destination.
With the stock market pushing into new record highs and Thanksgiving Day just around the corner, this week’s IPO calendar seems to be an afterthought. Nevertheless, it boasts nine deals looking to raise over $4.1 billion. Any way you slice it, that’s not too shabby.
The popular stock market indexes took another victory lap around the canyons of Wall Street last week and the IPO calendar went along for the ride. Eight deals were priced in November’s first week. Another 14 are on tap for this week.
The stock market came off a sharp four-week selloff to close out October with the Dow Jones Industrial Average and the S&P 500 at record closing highs and the Nasdaq Composite Index at its high for the year. This set the stage for a busy opening week for the November IPO calendar. You need the winds of a bull market at your back when it comes to initial public offerings.
Over the past several weeks, the new-issue calendar has been anchored by a limited partnership offering. A couple did well in the aftermarket, but not everyone caught lightning in a bottle. This week’s calendar has a limited partnership and people are reportedly looking favorably at this IPO.
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.