Make us your home page
Instagram

Big-name IPOs could be snapped up quickly next week

WASHINGTON — In the world of new stock offerings, everything about next week is big: the number of deals, the amount of money expected to be raised and the profiles of the companies going public.

The action is likely to draw a wide range of investors into the U.S. stock market. If investors snap up stock of companies such as General Motors and casino operator Caesars Entertainment, that could win over skittish traders who have taken refuge in the relative safety of bonds.

Stock in the week's biggest deal, General Motors, already may be scarce. Investment bankers handling the GM sale have more orders than stock for both the 365 million common shares and 60 million preferred shares that will be sold next week, a person briefed on the sale said Friday.

If demand remains high, GM could price the stock at the high end, or above, of the $26 to $29 range it expects.

The market for initial public stock offerings has been heating up and providing good returns. The FTSE Renaissance Composite IPO index, which tracks the performance of stocks that had IPOs in the past two years, is up nearly 13 percent this year. By comparison, the broad Standard & Poor's 500 index has gained 9 percent in that period.

The General Motors IPO could change that, said Kathleen Smith, an IPO expert and founder of investment advisor Renaissance Capital. Most recent IPO investments have come from funds that specialize in initial public offerings of stocks, she said. After next week, Smith said, managers of smaller portfolios and nonspecialists are likely to take an interest.

"This is going to be a consciousness-raising IPO for a broader group of investors who have not been particularly interested in the IPO market," Smith said.

Besides GM and Caesars, next week's big IPOs include management consultant Booz Allen Hamilton, the massive broker-dealer LPL Investment Holdings and electronics maker Aeroflex Holding.

With 10 deals expected to come to market next week, it will be the most active period for IPOs since 2007, according to Renaissance data.

The offerings could raise about $12.5 billion. That's the biggest week since March 2008, when nearly $18 billion was raised through IPOs with Visa's deal raising $17.86 billion of that.

The IPO market has improved steadily since August 2009. The sector had been almost frozen for nearly a year after massive losses on mortgage bonds upended global credit markets.

A lot of companies have postponed plans to go public, leading to an enormous backlog. Many were delayed because the companies had unrealistically high expectations for what their offerings should fetch. If next week's deals take off, more of those companies will go public, analysts said.

"If (GM) does well next week," said John Fitzgibbon, founder of research firm IPOScoop.com, "well — it's like honey attracts flies."

.Fast facts

For sale

Top U.S. companies slated to issue initial public offerings next week, with a total projected IPO revenue estimated at $12.5 billion, which would be the biggest week for IPOs since March 2008.

General Motors, automaker

Caesars Entertainment, casino operator

Booz Allen Hamilton, management consultant

LPL Investment Holdings, broker-dealer

Aeroflex Holding, electronics maker

Big-name IPOs could be snapped up quickly next week 11/12/10 [Last modified: Monday, November 7, 2011 1:21pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Associated Press.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. For Gov. Rick Scott, 'fighting' could mean vetoing entire state budget

    State Roundup

    Every day, Gov. Rick Scott is getting a lot of advice.

    The last time a Florida governor vetoed the education portion of the state budget was in 1983. Gov. Bob Graham blasted fellow Democrats for their “willing acceptance of mediocrity.”
  2. Potential new laws further curb Floridians' right to government in the Sunshine

    State Roundup

    TALLAHASSEE — From temporarily shielding the identities of murder witnesses to permanently sealing millions of criminal and arrest records, state lawmakers did more this spring than they have in all but one of the past 22 years to chip away at Floridians' constitutional guarantees to access government records and …

    The Legislature passed 17 new exemptions to the Sunshine Law, according to a tally by the First Amendment Foundation.
  3. Data breach exposes 469 Social Security numbers, thousands of concealed weapons holders

    Corporate

    Social Security numbers for up to 469 people and information about thousands of concealed weapons holders were exposed in a data breach at Florida the Department of Agriculture and Consumer Services. The breach, which the agency believes happened about two weeks ago, occurred in an online payments system, spokesperson …

    Commissioner of Agriculture Adam Putnam on Monday that nearly 500 people may have had their Social Security numbers obtained in a data breach in his office.
[Times file photo]

  4. Trigaux: Can Duke Energy Florida's new chief grow a business when customers use less power?

    Energy

    Let's hope Harry Sideris has a bit of Harry Houdini in him.

    Duke Energy Florida president Harry Sideris laid out his prioriities for the power company ranging from improved customer service to the use of more large-scale solar farms to provide electricity. And he acknowledged a critical challenge: People are using less electricity these days. [SCOTT KEELER   |   Times]
  5. Citigroup agrees to pay nearly $100 million fine for Mexican subsidiary

    Banking

    NEW YORK — Citigroup has agreed to pay nearly $100 million to federal authorities to settle claims that a lack of internal controls and negligence in the bank's Mexican subsidiary may have allowed customers to commit money laundering.

    Citigroup has agreed to pay nearly $100 million to federal authorities to settle claims that a lack of internal controls and negligence in the bank's Mexican subsidiary may have allowed customers to commit money laundering. 
[Associated Press file photo]