It looks like the recent volatility in the equities markets is having a negative impact on new stocks. Last week, there were 11 offerings and seven either posted break-even or negative returns. Some were actually pretty awful, with Vivint Solar (VSLR) down 14% and Atento (ATTO) off by 15%. (One deal, Viking Therapeutics, was delayed.)
But the weakness may be more than about adverse market conditions. Let’s face it, there has been a flood of new stocks that have hit the markets, with mega deals like Alibaba (BABA), and Citizens Financial Group (CFG). So it is reasonable that there should be some investor fatigue.
Yet Wall Street bankers are still pushing forward, as there are 8 new stocks ready to go public this week. Let’s take a look at each. Read