The IPO circus came to town late Thursday afternoon, Oct. 3, when Twitter(TWTR – proposed) filed for its IPO to raise $1 billion. It triggered a nonstop media blitz with the IPO “gurus” coming out of the woodwork to give their “analysis,” but a few questions lingered in the background. They will soon be answered.
It has been 13 long years since the IPO bubble of Insanity-dot-com left town. But don’t look now. Another IPO bubble just might be in the making. It can be found under the heading of “Bio-IPOs,” and this year’s crop has been soaring.
You won’t find Moonshot Alley on any street map of lower Manhattan. It is part of a place called the IPO market. Last week, three offerings found their way onto that elusive pathway and one made into the “IPO Hall of Fame” with a moonshot opening-day gain.
It was Twitter here, Twitter there, Twitter everywhere, a lot of wing flapping over Twitter’s IPO, but no flying. That’s the way things work under the JOBS Act of 2012.
The post-Labor Day IPO market remained quiet last week, but U.S. Securities and Exchange Commission filing window was alive with IPO traffic. The signals are flashing that the calendar is coming back to life in the final weeks of Indian summer.
Except for a small bio-IPO wiggling its way into the market during the last two weeks of August, the calendar has been dormant. The IPO filing window has not.
When the market launches its IPO calendar this week, it could well be the final one for the Summer of 2013. Year after year, decade after decade, the IPO production line traditionally closes down during the last two weeks of August – vacation time ahead of the Labor Day break. This year looks no different.
When the Dow Jones Industrial Average closed on Friday, Aug. 2, at a record high, the S&P 500 Index finished on Friday at a record high and the Nasdaq Composite Index ended on Friday at a 13-year recovery high, this raised the question: Can the IPO market be far behind? Answer: It has arrived. You just don’t see it coming these days.