The IPO market was hit with double whammies that dried up the calendar. But somewhere in time, there is a light at the end of the tunnel.
(Editor’s Note: This is an updated column that clarifies a case of the extension of a lock-up period’s expiration date.)
These headlines – “As Lock-Up Expires, Groupon’s Shares Plunge” and “Groupon shares drop as IPO lock-up ends” – ran on two major financial news services on Friday, June 1. Not to be outdone, more than a dozen others chimed in with their versions of the same story.
The aftershocks of the Facebook (FB) IPO were felt in IPO Valley all last week. It was a significant event, but nevertheless, an isolated event.
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.
Facebook (FB-proposed) dominated the news when it announced its IPO’s offering terms and a pricing date last week. The deal is set to make its debut on Friday, May 18. However we are getting ahead of ourselves. This week’s IPO calendar has a dozen companies waiting to get priced. But let’s take a quick peak at Facebook first.
Two IPOs are coming to town this week with all the fanfare of a three-ring circus. They are The Carlyle Group L.P. and Tilly’s. The question is, “What will the circus grounds look like after their opening-day show is over?”
Technology companies are the shining stars in the spring IPO skies. Last week’s calendar produced a moonshot and a starburst while the pending Facebook (FB – proposed) IPO is waiting in the wings.
Five of this week’s seven new faces on the calendar are scheduled to start trading on Friday morning. And as the nursery rhyme says, “Friday’s child is loving and giving.” This is what the IPO handicappers are expecting from Friday’s offerings.
Five of this week’s eight IPOs are scheduled to start trading on Thursday morning. That’s deep into the week. And as the nursery rhyme says, Thursday’s child has a long way to go. The IPO handicappers are not looking for any opening-day moonshots, but there are a few interesting names on the calendar.