As 2009 wrapped up its IPO year, Benjamin Franklin’s words of wisdom finally came through to Wall Street: “Life’s tragedy is that we get old too soon and wise too late.”
The IPO calendar gears up this week for its final lap around the new-issue arena. There are four companies scheduled to go public, but with last week’s calendar hitting the wall, skeptics abound in the Land of IPOs.
Wall Street’s bankers are offering an IPO platter full of Chinese fortune cookies this week, just as holiday parties get into full swing ahead of Hanukkah and Christmas. The Chinese deals account for four of the eight companies on the new-issues calendar. But the Chinese quartet is not headed to market without some skepticism. It could, however, be unfounded.
With the Thanksgiving holiday in the rear-view mirror, bankers are preparing for the year-end IPO rush. This week, though, they are not getting off to a very fast start.
An unexpected pop and a startling flop generated the most buzz in the IPO market last week. But the most significant development may have flown under the radar: Nine new names joined the IPO pipeline last week.
Six deals are perched in this week’s IPO nest, waiting to take flight. Bankers expect to raise $1 billion. And here’s where Mother Nature has something in common with Wall Street -– some of these deals will fly off the runway, while others will not.
Wall Street will get its own version of Fashion Week with two retailers aiming to go public in the days ahead. One is a company called rue21 (NYSE: RUE – proposed) and the other is Dollar General (NYSE: DG – proposed).
November will open its doors with six IPOs this week. They expect to raise $1.65 billion. Not a shabby start, considering that last year, only one deal was priced during the entire month of November 2008. This week’s traffic includes a household name and a dot-com. Let’s take a quick look at this week’s headliners.
The trick in selling anything is marking the merchandise at a price to sell. October’s secondary/follow-on calendar has found the answer; the new-issues calendar has not. And the end result is on the ticker tape. In Wall Street jargon, “the tape tells the tale.”
Navigating the IPO market is a bit like driving down the highway, where you need to focus on what you can see through the windshield while occasionally checking out any other activity by glancing in the rear view mirror.