Oct 12, 2015, 12:55 pm EST
Even though the overall markets were on fire last week, the enthusiasm for new stocks was not so robust. Actually, underwriters had to substantially cut back on their pricings just to get deals done — except for the Pure Storage (PSTG) offering. Despite this, the average returns were still not so hot, at about 9% or so.
As for the upcoming week, the calendar is fairly light, which should be no surprise. Yet there are two deals that could raise over $4.6 billion, which include First Data and Albertsons.
Although, if the markets continue to rally, these offerings certainly have a good chance of getting traction. What’s more, First Data and Albertsons are certainly strong operators. Read
Oct 5, 2015, 12:40 pm EST
Last week was horrific for new stocks. Among the five companies that pulled off their deals, all suffered at least a 19% cut from the midpoints according to Renaissance Capital. No doubt, the recent market volatility has taken a toll on new stocks.
Despite this, it is important for investors to keep in mind that the current harsh environment is likely to provide some nice opportunities for those looking at new stocks.
Let’s face it, if a company can do an initial public offering right now, it must be a quality operator, right? Besides, the valuation should be fairly reasonable. Read
Oct 1, 2015, 12:40 pm EST
Whenever there is a spike in volatility, the market for new stocks always gets hit particularly hard. This time around has been no different. For the most part, the initial public offering market has gotten off to a very slow start.
But this does not mean that things are hopeless.
Keep in mind that conditions can change quickly — and the result can spike interest in new stocks. What’s more, for the third quarter, there are a variety of large, high-quality companies prepping IPOs. Read
Sep 30, 2015, 12:30 pm EST
Fiat Chrysler’s (FCAU) Ferrari IPO could happen as early as this Friday after a year of talk about it.
Source: Auto Car India
News that the Ferrari IPO, which could be worth $1 billion, could occur as soon as Friday comes from unnamed sources. It’s also possible that pricing for the IPO will start in mid-October. The IPO was first heard of in October 2014 after a Securities and Exchange Commission filing, reports Business Insider.
The new Ferrari IPO will be for a company that isn’t just focused on cars, but will also include luxury goods. The shares will be traded on the New York Stock Exchange alongside Fiat Chrysler shares. Legally, the company can’t start its IPO until Oct. 13 due to the recent merger of Fiat and Chrysler, NBC News notes. Read
Sep 28, 2015, 12:17 pm EST
The good news is that there are plenty of new stocks on deck. However, the bad news is that most of them are biotech operators.
Of course, the sector has plunged into bear market territory, with the ProShares Ultra Nasdaq Biotechnology ETF (BIB) off more than 30% since July.
As should be no surprise, the smaller operators have taken the biggest hits. And this certainly will make the environment extremely tough for this week’s biotech IPOs. Read