Busiest August for IPOs Since 2005

Wyatt Investment Research

Initial public offerings are continuing their torrid pace this month.

Seventeen IPOs have already priced this month, already making it the busiest August for new stocks since 2005. The 17 IPOs this month brings the tally since the beginning of May to 86. That’s the busiest four-month stretch since 2006 – and there’s still almost two weeks left in the month.

The month’s most successful IPO, thus far, has been Intrexon (XON), a biotech company that went public on August. XON shares are already up 60% from its IPO price despite pricing at the high end of its expected range.

China Commercial Credit (CCCR), a China-based microcredit lender to small businesses, had the most impressive first day, shooting up 58% in its IPO last Monday.

The tide may have turned in the last week, however. Stocks have fallen nearly 3% in the last week. Some feel it’s the beginning of a longer pullback. So perhaps it’s no coincidence that IPOs have slowed in the last few days.

According to the IPO site Renaissance Capital, no initial public offerings are currently in the hopper. The last company to go public, Sophiris Bio (SPHS), fell 17% in its debut last Friday.

It appears that the IPO momentum may be slowing. But that doesn’t change the fact that it’s been a banner four months for the IPO market.



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