IPO Market Stalls After 2011 Disappointments

Friday, 06 Jan 2012 07:21 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
About 70 percent of the U.S. companies that went public last year are now trading below their offering prices, according to Kathleen Smith, a principal at Renaissance Capital. And that’s putting a damper on the initial public offering (IPO) market, The New York Times reports.

More than 200 companies have their IPO plans on hold, the biggest amount in about 10 years, according to Renaissance.

Investors are excited about a potential offering from Facebook. The social networking colossus is expected to go public in the second quarter at a value possibly reaching $100 billion.
_________________________________________________________

Unthinkable ‘Death Cross’ Signal Haunts Investors
MarketWatch reports that “all three major U.S. indexes now are in Death Cross mode,” signaling a possible crash. Watch the Aftershock Video, Be prepared!
_________________________________________________________


But people aren’t so excited about other companies waiting to go public, such as Toys “R” Us, Yelp, and the Carlyle Group.

Facebook “will bring a potentially unprecedented amount of attention to the IPO market,” Peter Falvey, a managing director at Morgan Keegan, tells The Times. But, “its IPO in all likelihood won’t have a tremendous impact on the ability of other companies to execute offerings.”

And in the unlikely event that Facebook tanks, the IPO market could really take a dive, with investors thinking, “What does that mean for the prospects of other companies?” Falvey says.

And what would it take to get the IPO market running strong?

“You might see more IPOs emerge if we get resolution in Europe or stability that makes investors more comfortable with the overall market,” David Erickson, co-head of equity capital markets at Barclays, tells Bloomberg.

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Poll: Roberts, Orman in Dead Heat in Kansas Senate Race

Monday, 20 Oct 2014 22:52 PM

The closely watched U.S. Senate race in Kansas is going down to the wire: incumbent Republican Sen. Pat Roberts and inde . . .

Evangelicals Using Obama Playbook in Hopes of Political Revival

Monday, 20 Oct 2014 21:56 PM

The religious right is looking for a political revival by singing from a familiar hymn book: Barack Obama's. . . .

Mark Begich Is Latest Dem Not Saying Whether He Voted for Obama

Monday, 20 Oct 2014 20:33 PM

Sen. Mark Begich, an Alaska Democrat running for re-election against Republican Dan Sullivan, has joined a group of seve . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved