Don't Blame Facebook for the IPO Drought
This year, the Nasdaq is down 4.8% since April 5 when the JOBS Act was passed. As if on cue, IPOs dried up.
So, if Wall Street market lore holds true, that IPOs recover five to six weeks after a market downturn, then that puts us at mid-July for a return of the IPO market. Murphy though believes the timing will be terrible. "Mid-July is a bad time. It's hard to get anything done. All the bankers are gone on vacation. Planning for July is risky because a delay puts you in August. We've become more international with everyone on vacation in August."
Four companies are scheduled to go public next week, ending the offering stalemate. Fingers are crossed that there won't be more postponements or withdrawals. As we've seen, just because they are on the calendar doesn't mean they'll actually get done.
It also looks like bankers agree with Murphy; it's a small window here that they are trying to squeeze through. If they can't pull the trigger on these deals quickly, then it looks like September will be the next likely month to sell these deals. As of June 20, there are 183 actives IPOs in the pipeline.
"September will be huge," said Murphy. So enjoy the laid-back IPO season of the summer. September will be a blur.
--Written by Debra Borchardt in New York.
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