It's been a busy year for initial public offering (IPO) investing, and despite recent volatility, it's looking to be a busy fall for the new issues market...
The stock market has remained firm in spite of increasing tensions in the Middle East and the fear of quantitative easing (QE) tapering from the U.S. Federal Reserve.
IPO Market 2013: What's Next After the White-Hot Start
The IPO market has had a strong first half in 2013, in some cases delivering double-digit gains for those who have ventured into IPO investing.
As the stock market has staged an impressive rally, investor demand to get into the IPO market is returning to pre- credit-crisis levels. The second quarter was actually the most active three-month period for IPOs in six years.
So far in 2013, we have seen 92 deals. The average gain for initial buyers is around 20%.
The pace seems to be picking up, as the first quarter saw 31 deals raise about $7.6 billion, and the second quarter had 61 offerings raise more than $13 billion.
Financial firms, including real estate investment trusts (REITs), have been the most active industry, with 35 offerings. Healthcare companies are right behind, closing in on 34 deals so far this year.
Some analysts think we could see more than 200 deals by the end of the year.
That means more opportunity for IPO investing for double-digit gains...here's where to look.
IPO Calendar 2013: Three Companies that Could Lead a New Rally
On the upcoming IPO calendar in May 2013 are three companies representing how a sector's recovery can create new profit winners.
Typically investors don't trust any company in a distressed sector, even if that company's fundamentals are strong. This makes it extremely difficult for companies in that sector to raise capital, recover, and grow.
For several years now this has been the case with industries and companies tied to the residential real estate market.
Housing prices have been in a virtual free fall since late 2007. Very few analysts feel comfortable declaring a market bottom.
This has made it almost impossible - until recently - for homebuilders to raise additional capital through IPOs.
The weak market also disrupted banks and financial institutions that fund homebuilding and buying.
But things are finally changing.
Large institutional investors are becoming more comfortable with the housing market and we see that the IPO calendar has two banks and a homebuilder coming to the marketplace in the next week.
This could be very good news for IPO investors as the first deals in the space tend to be among the best performing as a sector recovers and comes back into favor on Wall Street. Those who are coming to the market first could be market leaders as the rally gains momentum.
More good news for investors is that the recovery in the housing and banking markets is just starting to take hold. As faith continues to build in these industries, we will see more IPOs of related companies.
IPO Performance of 2013: Check Out Winners and Losers
2013 has been a strong year for IPO performance so far.
About 40 deals have been priced through the second week of April, and 33 of the deals have moved higher in the secondary market with an average gain of more than 20%.
If you missed these profits, don't worry. There is no sign of any slowing in the IPO market, as there are currently nine deals already scheduled for the next two weeks. In fact, IPO dollar volumes for the year so far are nearing the $9 billion mark, on par with the levels seen in 2012.
Let's take a look at the biggest and best IPO performances so far in 2013.
IPO Calendar: 2013's Most-Anticipated Deal So Far is Coming to Market
One of the most anticipated IPOs of 2013 is coming to market next week.
It's part of the handful of deals debuting next week, many of which include investment banks like Goldman Sachs, JPMorgan and BofA Merrill Lynch in lead roles.
The following few deals are expected to be high-demand offerings with solid aftermarket potential.
First, let's look at a couple of the small deals hitting the market next week. These are in addition to the three we profiled earlier in the week.
Three More for Your IPO Calendar
On Thursday, April 18, we will see an IPO from Taminco Corp. (NYSE: TAM), which produces alkylamines and alkylamine derivatives. These are used in the manufacturing of products for the agriculture, water treatment, personal & home care, animal nutrition and oil and gas end-markets. They help neutralize acidity, and remove contaminants from a wide range of products.
Taminco is the dominant player in a niche market with few competitors, giving it substantial pricing power, according to the prospectus. Most raw material price changes are easily passed on to the end consumer.
IPO Calendar 2013 Heats Up With These Five New Offerings
After a slow start to April with just one deal scheduled for pricing, the IPO calendar is getting crowded again in the second week of the month.
The equity markets remain fairly strong and recent IPOs have performed very well so there is strong institutional demand for equities in general, and new offerings specifically.
As long as the market is propped up by an aggressive U.S. Federal Reserve policy, stock prices should stay firm and that makes for favorable conditions for new equity offerings.
Here are five to keep on your radar.
IPO Calendar 2013: Don't Miss GARS, PF
Although some of the highly anticipated deals like Taylor Morrison Homes and Sea World now look like they may be off our IPO calendar until April, this year's offerings have generated huge interest so far.
It seems large institutional investors and hedge funds are hungry for a quality IPO product and Wall Street is rushing to meet the demand.
On Thursday we saw two pricings that immediately went to premiums in early trading. Enanta Pharmaceuticals Inc. (Nasdaq: ENTA) was priced at $14 and traded as high as $16.94 immediately after markets opened. Real Estate Investment Trust Aviv REIT (NYSE: AVIV) priced its shares at $20 and moved as high as $22.98 in early first-day trading.
This is on the heel of very strong performance from other deals priced in the last month.
As the housing markets continue to show signs of recovery, wood products company Boise Cascade Co. (NYSE: BCC) has risen 59% since its Feb. 5 pricing. The same housing trends have helped shares of Tri Pointe Homes Inc. (NYSE: TPH) rise by more than 20% since its debut in late January.
Revenue management software provider Model N Inc. (NYSE: MODN) rose 35% in first-day trading earlier this month.
The final week of March will include two deals that are expected to price their initial offerings. Let's take a look.
IPO Calendar 2013: Seven More Companies Coming to Market
Seven companies are on our IPO calendar next week.
Traders and investors who track the IPO marketplace will be watching carefully to see if there is enough demand to meet the wave of capacity anticipated. Most suspect that the demand is more than strong enough and companies making their trading debut will be healthy performers.
Let's take a look at the upcoming IPOs investors should watch.
IPO Calendar 2013: Don't Miss SSNI, MODN
The IPO calendar for 2013 is starting to get more crowded as spring approaches.
The aftermarket for initial offerings has been especially strong as investors are rewarded for investing in new ventures and private equity cash outs.
Analysts expect the pace of offerings to continue to increase as the demand has been very strong and the equity markets are at or approaching new all-time highs.
There will be two deals pricing in the next couple weeks and several larger deals are expected by the end of the month, including the widely anticipated Sea World offering.
In the last few days there have been two deals added to the upcoming IPO calendar with specific pricing dates coming in the next couple weeks.
IPO Calendar 2013: Who to Watch in March
After a very quiet end to February, several high-profile deals should make the initial public offering (IPO) calendar for March 2013.
The year has gotten off to a great start with strong market performance by newly public companies. Overall there have been 20 IPOs so far this year and 17 are currently trading higher than the offering price.
One of the biggest has been Norwegian Cruise Line Holdings Ltd. (Nasdaq: NCLH) with a blistering gain of more than 50% in just a few weeks.
March will see a slow but interesting start with just two deals coming to market in the first week of the month.