The IPO Buzz: Warming Up for a Bright July

In many communities throughout the United States, crowds will turn out to be entertained by parades, bands and fireworks to celebrate Independence Day – also known as the July 4th holiday, which falls on Wednesday. Wall Street will be closed that day. The IPO market traditionally shuts down for the Fourth as well. This year is no different. But there is some news developing.

June was a good month for the IPO market. And July is shaping up to be a bright month, based on the traffic at the U.S. Securities and Exchange Commission’s (SEC) filing window.

Consider this: In June 2018, bankers priced 28 IPOs, excluding eight unit offerings. Counting the latter, June’s final IPO traffic came in at 36 IPOs. Those figures were well above June’s average traffic over the last 17 years.

For the month of June, running from 2001 through 2017, the median June average was 16.3 IPOs.

Signs of July Sparklers

For the month of July, running from 2001 through 2017, the median July average was 14.3 IPOs.

That’s interesting, but here was a piece of news that was not reported. Over the last two weeks, the SEC’s filing window clocked in proposals from bankers for 19 new IPOs expecting to raise $2.8 billion.

That could be significant. The only data the general public has in predicting the future IPO calendar comes from the SEC filings. After all, if a company wants to go public, it must file with the regulators.

That’s what happened to the June 2018 IPO market. Companies came alive with filings to go public and magic touched the calendar.

Will July 2018 be any different?

July’s Second Week

This brings us to the week of July 9th, when the IPO Calendar was a blank slate at press time. This week, the July 4th holiday falls on Wednesday, breaking the week into a two-part market – two days before and two days after.

But anything can happen when the SEC’s filing window opens for business again on Monday morning, July 2nd.

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 opinion.