Start the conversation
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.
While the final two weeks of August saw very little activity in pricing of new deals, companies were busy filing with the Securities and Exchange Commission (SEC) for offerings to be priced and come to market in September and early October.
It looks like 15 companies have filed for offerings and expect to raise nearly $15 billion in the final week of the third quarter. The steady pace has made it possible for some interesting companies to hit our IPO calendar.
Here's a look at the IPO investing forecast.
IPO Investing in 2013: What's Ahead
Next Wednesday, Sept. 18, we will see an airline IPO that is being offered simultaneously in Mexico and the United States.
Volaris Aviation Holdings (NYSE: VLRS) is an ultra-low-cost carrier, or ULCC, based in Mexico. The company plans to offer low-cost air travel that appeals to deal searchers, cost-conscious business people, and leisure travelers heading to Mexico and select destinations in the United States.
According to the prospectus, it is the lowest-cost airline in Latin America right now.
Since it was founded in 2006, Volaris has increased its routes from 5 to 80 and grown the plane fleet from 4 to 43. The airline currently operates up to 235 daily flight segments on routes that connect 30 cities in Mexico and 10 cities in the United States.
The company will be pricing 28.9 million shares between $12 and $14. The joint managers of the offering will be Deutsche Bank Securities, Morgan Stanley, and UBS Investment Bank.
Wednesday also will see the initial offering of a software company that plans to profit from the "cloud"…
About the Author
Tim Melvin is an unlikely investment expert by any measure. Raised in the "projects" of Baltimore by a single mother, he never attended college and started out as a door-to-door vacuum salesman. But he knew the real money was in the stock market, so he set sights on investing - and by sheer force of determination, he eventually became a financial advisor to millionaires. Today, after 30 years of managing money for some of the wealthiest people in the world, he draws on his experience to help investors find "unreasonably good" bargain stocks, multiply profits, and build their nest eggs. Tim tirelessly works to find overlooked "hidden gems" in the stock market, drawing on the research of legendary investors like Benjamin Graham, Walter Schloss, and Marty Whitman. He has written and lectured extensively on the markets, with work appearing on Benzinga, Real Money, Daily Speculations, and more. He has published several books in the "Little Book of" Investment Series and a "Junior Chamber Course" geared towards young adults that teaches Graham's principles and techniques to a new generation of investors. Today, he serves as the Special Situations Strategist at Money Morning and the editor of "Max Wealth" and Heatseekers.