This Day On The Street
Continue to site
ADVERTISEMENT
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

IPO Frenzy: Is Toys 'R' Us the Next Deal?

(Updated with additional information on more pending IPOs, including several international offerings.)

AUSTIN, Texas ( TheStreet) -- The newly revived IPO hype is causing a stir in the market, but one possible blockbuster deal could be a landmark for the weak economy.

According to Hoover's IPO Scorecard, which was released Monday, the number of initial public offerings soared 240% in the third quarter compared to the same period last year. That represents the first triple-digit gain since 2004.

During the quarter, 17 companies went public on one of the major U.S. stock exchanges, raising $5.5 billion in the process. By comparison, in the third quarter of 2008 just five companies went public, raising $917 million.

Shanda Games (GAME), Banco Santander (STD) and A123 Systems (AONE) are just some of that names that began appearing on the big boards.

A123, a maker of lithium-ion car batteries, has soared more than 30% since its Sept. 24 IPO.

"We saw some good-grade companies that are middle of the road and ready to go public," Tim Walker, Hoover's industry expert and the author of Business Insight Zone, says. "We didn't see speculative offerings or blockbuster offerings. It was mostly well-run companies that were able to come to the market with some cadence, which is a healthy sign."

On Friday alone, Education Management (EDMC) and Echo Global Logistics (ECHO - Get Report) debuted on the Nasdaq.

This week, data firm Verisk Analytics plans to offer 85.25 million shares at $19 to $21 a share in a bid to raise about $1.7 billion. Verisk plans to be listed on Nasdaq under the symbol VRSK.

Also on the sidelines to go forward with their IPOs are JBS USA, Hyatt Hotels and Cobalt International Energy.

The sudden uptick in initial public offerings is also occuring overseas. On Monday, CapitalLand, Southeast Asia's largest developer, said it will list 20% to 30% of its shopping-mall arm in a Singapore IPO that sources said could raise at least $1 billion.

And there's little doubt that more names will join the list in the fourth quarter, as the economy continues to stabilize.

"The outlook for the end of this year and the beginning of 2010 is a good one when we consider that the third quarter of 2009 beat the previous four quarters combined, both in the number of IPO filings -- more than 30 -- and their average value -- around $400 million," Walker says.
1 of 3

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
Only $9.95
14-Days Free
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
SYM TRADE IT LAST %CHG
EDMC $0.09 0.00%
ECHO $23.10 0.39%
GAME $6.45 0.31%
GE $24.90 -1.00%
AAPL $113.82 0.47%

Markets

Chart of I:DJI
DOW 16,587.80 -55.21 -0.33%
S&P 500 1,981.97 -6.90 -0.35%
NASDAQ 4,814.21 -14.1150 -0.29%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs