Bankers collected underwriting fees from pricing 41 deals, which included seven unit offerings, according to available reports. However, that was well below the summer of 2005 when they priced 88 deals, which included 16 unit offerings.
Companies collected $6.5 billion in proceeds from the sales of their IPOs. That too was well below the summer of 2005, when companies collected $13 billion in proceeds from the sales of their IPOs.
IPO investors had an average gain of 4.82 percent by the end of the summer when 20 of the 34 non-unit offerings closed above their initial offering prices. That wasn’t too bad, considering that the Nasdaq Composite Index, the barometer of the IPO market, squeaked out a marginal 0.22 percent gain over the same time period.
On Aug. 31, the Nasdaq Composite Index closed at 2,183.75, up from 2,178.88 on May 31.
And that was the summer’s big story.
Out of the Rubble
The market had been hounded by worries about interest rates, earnings and geopolitics. These spooks drove the Nasdaq Composite Index to its 2006 low on July 21 at 2,020.39. That was down 14.9 percent from 2,370.88 on April 19, the 2006 closing high.
In the fallout from the stock market’s slide, bankers were forced to price 18 of the 34 IPOs, excluding the units, below their original filing ranges.
They had to postpone seven deals, which had been sitting on the IPO calendar with pricing dates.
And bankers had to withdraw 18 deals. Four of the withdrawals were on the IPO calendar with pricing dates.
But the withdrawals were not all that bad.
Consider this: Three of the 18 had been filed as far back as 2004. Another one, Hertz Corp., withdrew its IPO to raise $100 million; it re-filed as Hertz Global Holdings to raise $1 billion.
On the Plus Side
This summer, 96 companies filed plans to go public. They were looking to raise $17 billion.
Last week, eight IPOs filed amendments setting proposed offering terms. They are looking to raise about $944 million, if every deal is priced on the high end of its filing range. These offerings are ready to move from the pipeline to the IPO calendar with pricing dates.
Warm Winds
The winds blowing down Wall Street seem to have shifted to an investor-friendly breeze. On Aug. 31, the Nasdaq Composite Index closed 8.1 percent above its 2006 closing low set on July 21.
That helps set the stage for what could be a great fall season.
Here are a few IPOs that might –- just might — be on the buyers’ “most wanted” list. (For IPOScoop.com subscribers, please check ‘IPO Pipeline and Scoop Ratings’ for latest consensus calls):
- Acme Packet (Nasdaq: APKT proposed) is a Burlington, Massachusetts-based provider of session border controllers that lets service providers deliver secure and high-quality interactive communications (voice, video and other real-time multimedia sessions)across Internet Protocol network borders. Its products enhance security and encryption for telecom providers, corporations and law enforcement. Acme Packet filed for an IPO to raise $85 million on June 2.
- Bare Escentuals (Nasdaq: BARE proposed), a San Francisco-based provider of mineral-based cosmetics, filed for an IPO to raise $288 million on June 30.
- DivX (Nasdaq: DIVX proposed) is a San Diego, California-based manufacturer of products and services to improve the experience of media, such as a video compression-decompression software library. Its software, for example, lets a digital camera user record a home movie on a flash memory card. DivX filed for an IPO to raise $135 million on May 5. On Aug. 29, the company announced plans to price 9.1 million shares at $12 to $14 each to raise $118.3 million. No pricing date at press time.
- eHealth, (Nasdaq: EHTH proposed), a Mountain View, California-based online insurance provider, filed for an IPO to raise $85 million on April 25. Its customers include individuals and small businesses.
- NYMEX Holdings (NYSE: NMX proposed) is a New York City-based commodity-based futures exchange and clearinghouse. The company filed for an IPO to raise $250 million on July 17. Its main subsidiary is the New York Mercantile Exchange, where crude oil, natural gas and platinum futures are traded. Gold and silver futures are traded on its COMEX division.
After Labor Day
On Aug. 31, 2005, the Nasdaq Composite Index closed at 2,152.09 and finished the summer on an upbeat note. On Dec. 30, 2005, the Nasdaq closed at 2,205.32, UP 2.47 percent from the end of August. During that time span, bankers priced 76 IPOs and raised $9.8 billion.
On Aug. 31, 2006, the Nasdaq Composite closed at 2,193.16, UP 14.9 percent from its low for the year. Bankers had 179 IPOs in registration, looking to raise $29.1 billion. That was up sharply from 135 IPOs in registration, looking to raise $22.9 billion on Jan. 1, 2006.
Even though the summer of 2006 didn’t go into the history books with record numbers, the fall is shaping up to be much better.