The IPO Buzz: Keeping Score

For the week, bankers got eight deals out the door that raised $865.1 million. For March, they priced 23 deals that raised $3.3 billion. For the quarter, they priced 61 deals that raised $10.4 billion.
In 2006 Q1, bankers priced 55 deals that raised $9.7 billion.
In 2000 Q1, bankers priced 139 deals that raised $28 billion.
The above includes unit offerings (common stock and warrants), but excludes closed-end funds, best effort offerings, bank conversions, foreign IPOs not registered with the Securities and Exchange Commission and American Depositary Shares being offered for the first time in the United States by companies whose shares are already traded on their own national stock markets. (These are basically secondary or follow-on offerings.)
Now we know how the issuers made out (they collected the proceeds) and how the bankers made out (they collected underwriting fees and commissions).
But what about the customers?
They did OK, too.
In calculating the aftermarket performance of IPOs, unit offerings are excluded. Here’s why: Unit deals are sold as common stock and warrants, which can be in limitless combinations. So keeping track of how they perform can become difficult and downright confusing.
Something to Cheer About
To find out how the customers fared, just look at the IPO aftermarket scorecard.
The IPO Scorecard for 2007 Q1:
  • IPO priced: 44 (excluding 17 units).
  • Up: 25
  • Down: 19
  • Average gain: 8.95 percent
  • Nasdaq Composite: UP 0.26 percent
2006 Q1:
  • IPOs priced 43 (excluding 12 units).
  • Up: 29
  • Down: 14
  • Average gain: 22.1 percent
  • Nasdaq Composite: UP 6.01 percent
2006 Year End:
  • IPOs priced: 201 (excluding 39 units)
  • Up: 144
  • Down: 56
  • Unchanged: 1
  • Average gain: 26.9 percent
  • Nasdaq Composite: UP 9.52 percent
2005 Q1:
  • IPOs priced: 41 (excluding 3 units).
  • Up: 23
  • Down: 17
  • Unchanged: 1
  • Average gain: 5.58 percent
  • Nasdaq Composite: DOWN 8.76 percent
2005 Year End:
  • IPOs priced: 202 (excluding 32 units)
  • Up: 121
  • Down: 80
  • Unchanged: 1
  • Average gain: 20.7 percent
  • Nasdaq Composite: Down 1.37 percent
2004 Q1:
  • IPOs priced: 38 (excluding 3 units).
  • Up: 24
  • Down: 14
  • Average gain: 12.5 percent
  • Nasdaq Composite: up 2.69 percent
2004 Year End:
  • IPOs priced: 233 (excluding 15 units)
  • Up: 187
  • Down: 42
  • Unchanged: 2
  • Average gain: 36 percent
  • Nasdaq Composite: UP 8.59 percent
2003 Q1:
  • IPOs priced: 4 (excluding 1 unit).
  • Up: 4
  • Down: 1
  • Average gain: 6.1 percent
  • Nasdaq Composite: up 2.55 percent
2003 Year end:
  • IPOs priced: 82 (excluding 2 units)
  • Up: 65
  • Down: 15
  • Unchanged: 2
  • Average gain: 26.6 percent
  • Nasdaq Composite: UP 50 percent
The quarterly data bank does not reach back to 2000.
Just One Day
This coming week’s IPO traffic boils down to one day.
Passover begins at sundown on Monday and takes Tuesday out of the picture for many on Wall Street. On Good Friday, the financial markets will be closed. That leaves bankers with only Wednesday evening to price any deal for Thursday’s trading.
Bankers do have two offerings on the IPO calendar. One is a unit offering carried over from last week and the other is a new face at the IPO window. It is Veraz Networks (NASDAQ: VRAZ proposed).
Veraz is a San Jose, California-based provider of Internet Protocol, soft switches, media gateways and digital compression products to wire-line, wireless and broadband service providers.
For subscribers: Please check the IPO SCOOP Rated Calendar for the latest Street Consensus of Opening Premium ratings, and standby for IPO Alert emailings for any changes in those SCOOP ratings.
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