Well, there are no IPOs planned for this week. But then again, the market has been active lately and it’s also a holiday week, so it’s reasonable that there will be a breather.
As for last week, we got a sense of the strong enthusiasm for quality deals, especially for next-generation technology companies. Just look at the IPO of Xoom (NASDAQ:XOOM), which is an online money transfer service. On its debut, the stock spiked 59%.
Also, part of the reason the number of filings seems light is the impact of the JOBS Act. This legislation allows early-stage companies to file their documents with the SEC on a “confidential basis.” This means that a company will usually disclose its IPO plans just a couple weeks before a deal hits the market.
In other words, it’s a good bet there have actually been a lot of filings during the past couple months, we just don’t know about them yet.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.
A long-time follower of the IPO scene, back in 1999 Tom started one of the first sites in the space called WebIPO. It was a place where investors got research as well as access to deals for the dot-com boom. Tom also wrote the top-selling book, Investing in IPOs. In it, he covers all the aspects of analyzing an IPO, such as reading the prospectus, detecting the risk factors and understanding some of the arcane regulations. But don’t worry — if that process is too intimidating for you, thankfully Tom will do the legwork for you right here in the IPO Playbook blog.
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