Good news are starting to come across from market indicators. The economy is slowly starting to turn its heavy pessimism to a optimistic, normal belief of opportunity. Looking at these indicators on IPO filings, there are plenaty of opportunities on the horizon.
Here ar some good news posted by Wall Street Journal.
“The pace of new stock offerings perked up this spring after a cold winter, but the market for new issues still has a long way to go before a real recovery.
The story was the same in every corner of the world. At best, there was a pickup in issuance in the second quarter of 2009 from the first quarter, but there was nowhere near the levels of a year earlier.
World-wide, 78 companies raised $10.6 billion in initial public offerings of stock in the second quarter, up from 54 deals that raised just $1.3 billion in the first three months of 2009, according to data from Dealogic, which tracks new issues. But in the second quarter of 2008, 243 new public companies sold $33.4 billion of shares, by Dealogic’s count. All data exclude real-estate investment trusts and empty shell companies known as special-purpose acquisition companies, or SPACs.
If comparisons with last year aren’t sobering enough, consider this: In the second quarter of 2007, 469 companies raised a total of $88.2 billion — six times the number and more than eight times the dollar volume of the latest three months.
“In terms of volume of issuance, let’s face it, we’re still in the very early innings of recovery,” says Kevin Willsey, head of equity capital markets for the Americas at J.P. Morgan Chase & Co.
U.S. pricings in the latest quarter totaled 10, valued at $1.3 billion, compared with 11 deals that raised $4.2 billion in the 2008 period. Latin America and India each had one IPO for the second quarter, while Russia and Australia had none.
The largest offering in the world during the second quarter was the $4.27 billion raised on the Bovespa stock exchange by VisaNet, the Brazilian affiliate of credit-card network Visa Inc.
China had 13 IPOs in the second quarter that raised a combined $2.9 billion, compared with 20 that raised $2.3 billion a year ago; Europe had 10 deals totaling just $209 million, compared with 79 that raised $12.1 billion.
Still, bankers appear more optimistic now about the IPO market than at any time since last fall, with many saying there could be a stronger pickup in issuance in the second part of this year.
U.S. IPOs have performed well on their debuts this year. The May offering of OpenTable Inc. generated the best first-day performance since late 2007, before the stock-market meltdown. The company, which raised $60 million in its offering, rose 59% on its first day of trading.
The outlook for the IPO market depends on whether there are nasty surprises in second-quarter earnings reports, which will start arriving by the middle of this month, stable prices in the broader stock market and continued hopes for economic recovery.”
In this articl, Lynn cowan closes by saying:
“More deals later in the year would play into historical buying patterns by large institutions such as mutual funds and hedge funds, says Joe Castle, head of U.S. equities syndicate at Barclays Capital. “Fall is a popular time to buy IPOs,” he says, “because it positions portfolios with high-growth companies for the following calendar year and boosts performance for the current year if they trade well initially.”
Despite glimmers of hope in some areas of the world, like the U.S., bankers and investors alike are aware things could suddenly take a turn for the worse.
“We don’t see firms storming the gates to launch into the IPO market right now,” says David DiPietro, president of boutique investment bank Signal Hill in Baltimore. “We probably need to see another quarter of solid earnings from a broad base of companies.”
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