The IPO Buzz: A Lean Thanksgiving Menu

This week’s IPO Calendar has just two deals – a new name and a carryover from last week. This lean Thanksgiving menu is not at all unusual. The IPO world usually slows down for the week of the Thanksgiving Day holiday.

The new name is Alussa Energy Acquisition (ALUSU proposed) while LMP Automotive Holdings (LMPX proposed) is the carryover.

If both get out the door, that will bring November 2019’s IPO traffic to 27 deals, up from 17, the average for the month of November from 2001 through 2018.

Nevertheless, this will be a short week. Wall Street will be closed on Thursday for the U.S. Thanksgiving holiday. So that leaves just a two-day work week for pricing IPOs – Monday night and Tuesday night, with their debuts on Tuesday and Wednesday, respectively. Wall Street will begin to resemble a ghost town by noon on Wednesday, when many bankers and traders will leave early to head out either to grandma’s house or to an undisclosed party destination. On Friday, the U.S. stock market will be open for a short session – ending at 1 p.m. EST for both the New York Stock Exchange and the NASDAQ. The Friday after Thanksgiving is typically one of the lightest trading days of the year, in terms of volume, and Wall Street will be sparsely populated.

Wrapping Up November

Keeping that background in mind, let’s take a look at how the IPO market is wrapping up November. Two deals are set to be priced. Bankers expect to raise about $236.5 million.

Monday night pricing for Tuesday trading:

Alussa Energy Acquisition (ALUSU proposed), based in the Cayman Islands, is a blank check company formed to acquire one or more energy businesses with an aggregate enterprise value of approximately $500 million to $1 billion. The company plans to focus on acquiring and building an oil and gas exploration and production company or a midstream business.

Monday night pricing for Tuesday trading – or Tuesday night pricing for Wednesday trading:

LMP Automotive Holdings (LMPX proposed), based in Plantation, Florida, is an e-commerce and facilities-based retail platform for consumers who desire to buy, sell, rent, subscribe for or finance pre-owned and new automobiles. The company offers vehicle subscriptions as an alternative to buying or leasing without long-term commitments, the prospectus says.

December’s First Week

The IPO Calendar for the first week of December is as untouched as freshly fallen snow. No deals are on tap. But that could change when the U.S. Securities and Exchange Commission’s filing window opens again for business on Monday morning.

Stay tuned.

Disclosure: Neither the author nor anyone else on the staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and staff do not issue advice, recommendations or opinions.