This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

J.P. Morgan Drops Out of Top 10 IPO Underwriters

It's been an awful year for initial public offerings for just about every Wall Street firm. But it's been downright brutal for J.P. Morgan Chase (JPM - Get Report), which has dropped to 20th place in the industry rankings of lead underwriters on domestic IPOs.

The lowly score leaves J.P. Morgan trailing the likes of Keefe Bruyette & Woods, Morgan Keegan and William Blair -- niche players that lack the storied history of J.P. Morgan. Last year, according to Thomson Financial Securities Data, J.P. Morgan came in at a respectable seventh place in the rankings, which are based on the total dollar value of new stock offerings an investment bank brings to market.

On Wall Street, investment banks that don't break into the top 10 in underwriting IPOs usually are either specialized boutiques or struggling also-rans. No one would think to classify J.P. Morgan, which has visions of creating a financial behemoth that would rival the firepower of Citigroup (C - Get Report), as an investment-banking boutique.

Indeed, this year's rankings demonstrate just how wide a gap there is between J.P. Morgan and Citigroup, the nation's biggest financial-services firm, when it comes to IPO underwriting for U.S. companies. Citigroup's Salomon Smith Barney investment-banking division sits in first place in the latest Securities Data rankings.

So far, Citigroup has taken a lead underwriting position on 10 IPOs with a combined market value of $6.27 billion. Its nearest competitor is Goldman Sachs (GS), which has managed six IPOs with a combined value of $3.45 billion.

J.P. Morgan, by comparison, was the co-lead underwriter this year on just a single IPO -- a $90 million stock offering for USI Holdings (USIH), a small San Francisco-based financial-services firm. But since J.P. Morgan shared the underwriting assignment with Merrill Lynch (MER), Securities Data only gives the bank credit for bringing $44.5 million of new stock offerings to market this year.

Admittedly, the rankings don't tell the full story, because every firm's numbers are down sharply from just a few years ago. With only a few weeks left in the year, just 73 domestic IPOs have come to market with a combined dollar value of $20.1 billion. In 1999, at the peak of the stock market bubble, Wall Street firms underwrote a record 481 IPOs worth $58.7 billion.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
C $51.64 1.25%
JPM $60.96 2.37%
TAP.A $85.17 0.45%
AAPL $126.37 2.53%
FB $83.20 -0.13%


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs