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Posts Tagged ‘ipo opportunities’

Funds, REITs Eye IPOs for Capital

Posted in Board Of Intellectual Capital, Housing market, Investments, Market research, tagged , , , , , , , , , , on August 11, 2009| Leave a Comment »

Here is an article from Globest.com in regards to possible IPO opportunities.

“LOS ANGELES-Earlier this summer, locally based Colony Financial Inc. filed a registration statement for a $500 million IPO. This organization, experts tell GlobeSt.com, is one of many REITs and opportunity funds that will tap the public markets for liquidity to buy distressed and other assets during the next 12 to 18 months.

Ernst & Young’s Howard Roth with the company’s New York City office points out the market hasn’t seen a flood of fund and REIT public offerings. Nor has Craig Silvers, who is president of Bricks & Mortar Capital, which operates on the other side of the country, in Los Angeles. But both agree that it’s coming.

“Right now, we’re seeing a raft of registrations for mortgage REITs,” Roth says. “During the past six weeks, we’ve seen close to 25 registrations. This is clearly a trend right now. And it’s clearly an avenue that sponsors believe they can take advantage of.”

“Registrations, of course, don’t necessarily mean automatic initial public offerings. Silvers points out that the opportunity funds are definitely being formed to buy distressed assets. Whether they go public or not is a different matter. But it’s becoming a viable alternative.”

In the real estate market earlier this year, a lot of private companies got into trouble,” Silvers says. “The private ones had to liquidate their assets and declare bankruptcy because they couldn’t raise private capital.” However, funds and REITs going public “can tap the public markets for cash whenever an acquisition opportunity comes up,” Silvers remarks.

Roth points out that the benefits of going public include better access to capital and stronger discipline when it comes to accounting, operations and management. Then there is the transparency issue in that investors would know what they’re getting into when they put their money in the stock.”

Read the full article here.

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IPO Issuance Steps Up

Posted in Board Of Intellectual Capital, Business models, Economy, Gerbsman Partners, Investments, Market research, Technology, Venture Capital, tagged , , , , , , , , , , , , , , on July 1, 2009| Leave a Comment »

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.”

To read the full article, click here.

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