There were whispers coming from Wall Street’s syndicate desks late this summer that the IPO market was gearing up for a busy fall. Six weeks later, it’s happening. Last week’s new-issue traffic was full of confirmations, and this week’s calendar stands ready to deliver.
Chinese IPOs have grabbed a lot of headlines lately, such as the China Construction Bank IPO hitting the new-issues cash register for $7.7 billion in Shanghai last week. Halfway around the world at the corner of Broad and Wall Streets, Chinese IPOs have been minting money for American investors. Here’s what the media has missed.
There’s no question that the Fed writes the script for Wall Street. Look no further than last week’s action. A more-than-expected rate cut of half a percentage point sparked a sharp stock market rally and, not to be outdone, the IPO calendar chipped in with an opening-day moonshot.
This week’s IPO, athenahealth, has been billed by many as “hot, hot, hot.” It is — assuming it gets priced within its original filing range. But it isn’t the only pony in the IPO stable.
The fashionistas flocked to Bryant Park for New York’s semi-annual fashion show last week. About four miles south, Wall Street was the setting of the post-Labor Day IPO show. There was one deal. The paparazzi ignored it.
The Summer of ‘07 was not a good one for the stock market. On the other hand, the IPO market had a good summer and tech IPOs had a great one.
Bankers are expected to price one IPO this week, or maybe it will get done the first week of September. That’s the way it goes with the specified purpose acquisition companies, also known as SPACs, or “blank check” companies. Sometimes they get priced, sometimes they don’t. Everything is in the hands of the U.S. Securities and Exchange Commission.August 26, 2007 Read More
On Thursday, Wall Street gave us a classic selling climax. On Friday, the Fed gave us a discount rate cut. And over the last month, the U.S. Securities and Exchange Commission has given us 60 new IPO filings expecting to raise $9.6 billion. The message is clear –- look for a great fall season.
You need a little bit of juice to get out the door in today’s IPO market. Last week was a classic example and this week’s “deal of the week” is as well.
With “the Bear” in the headlines, as in Bear Stearns, and the problems with subprime loans that produced a volatile stock market, not too much attention has been given to the IPO calendar. And guess what? This week boasts a baker’s dozen on the new-issues launching pad. The 13 IPOs aim to raise nearly $1.7 billion. Now that’s heavy traffic.