Kinder Morgan’s (KMI – proposed) blockbuster deal of $2.2 billion takes center stage in this week’s IPO Theater. But it’s not the only show in town. Last year’s average volume was slightly over three deals per week. This week’s calendar features 13 IPOs, amounting to a baker’s dozen in the week before Valentine’s Day. A pickup in IPO traffic doesn’t just happen overnight. Here’s the back story.
This week’s IPO calendar can be described as a lot of wing flapping and little flying. A dozen or so deals grace this week’s calendar, but there are no marquee names to grab any headlines. However, there’s an odd duck coming to the U.S. capital markets from the London Stock Exchange’s Alternative Investment Market, or AIM, that’s billed as an “IPO.” It isn’t.
Just appearing on the horizon in New York City’s harbor is a small armada carrying cargos of IPOs from near and far. They are expected to start arriving next week and open the front door to 2011’s IPO market. It’s Wall Street’s answer to Fleet Week, albeit a few months early.
The recent IPO buzz has been almost deafening with all the thunder and lightning over Facebook hooking up with Goldman Sachs (GS). If an IPO happens, speculation has it coming to market sometime in 2012. Now back to the present and a reality check -– the 2011 IPO Express pulls out of the New-Issues Depot this week with one boring REIT on board.
When the curtain came down on the IPOs of 2010, there were a couple of things gleaned from the year’s new-issues market. First, bull markets are more fun. Second, a “dead-cat” bounce for an IPO is a myth. Before we get into this, let’s look at 2010’s IPO Scorecard.