The message from the corner of Broad and Wall Streets last week was clear: “IPOs are back in town.”
Last week’s IPO traffic underscored what everybody already knew – earnings are “in” and China is “out.”
Clearwire (NASDAQ: CLWR) came to Wall Street last week. It was surrounded with a lot of buzz and many were yelling: “Buy!” “Buy!” “Buy!” The IPO was priced at $25 per share, opened at $27.25 and sank. By the end of the week, it was “bye, bye.”
There were two stories out of China last week. One turned your stomach. The other could be an eye opener.
The IPO calendar has always had a three-week window. It consists of last week, this week and next. Beyond that, bankers keep the pricing dates close to their vests.
In case anybody noticed, the U.S. Securities and Exchange Commission’s filing window was a busy place last week. Six IPOs were priced, seven deals posted proposed pricing terms and 16 companies filed plans to go public.
Last week’s IPO market had its share of thrills and spills among the 14 new issues that made their debuts. Of the bookend deals — the best and the worst –- each traded on the New York Stock Exchange and each had Goldman Sachs’ name on the prestigious left-hand side of their prospectuses.
This week’s IPO calendar boils down to one word: Busy.
An Arctic blast swept through town last week and sent chills through the streets of New York City. The weather didn’t phase the buildup of the secondary and IPO calendars. But a few of the deals did get a cold shoulder or two from investors. Not everything got priced.
This week’s new-issues calendar is starting to look more like a stampede than a cavalry charge. There are nearly 20 deals thundering down the home stretch. It includes secondary offerings, closed-end funds and IPOs. And the IPOs range from drones to fertilizers to blank checks.