NEW YORK (TheStreet) -- The market for initial public offerings (IPO) has a 'closed' sign hanging over it and private equity investors will use mergers, private equity buyouts, spinoffs and a lot of waiting as a replacement for selling public shares.
Bankers are keeping their powder dry as they wait for the market to stabilize as it has been battered by large swings from the European debt crisis. "A lot of bankers would tell you that because of the froth of the summer, there are a lot of IPO's sitting in the pipeline," said James Woolery, co-head of J.P. Morgan's (JPM) North American mergers and acquisitions division at the Dow Jones Private Equity Analyst Conference in the Waldorf Astoria Hotel on Wednesday.
Jeff Bunzel head of equity capital markets at Credit Suisse (CS) agreed adding, "There hasn't been an I.P.O. in one and a half months... we will need two-to-three weeks of market stability and then we'll see some transactions happen."
Charles J. Ditkoff, vice chairman of Bank of America Merrill Lynch's (BAC) global healthcare group said that virtually no public offerings happen when the VIX volatility index is above 30. The VIX is currently at tracking above 40.According to data compiled by Bloomberg, announced I.P.O.'s are up 90% and total 614 in the past twelve months; however almost of a quarter of withdrawn public offerings in that period were done since August. There are only 2 up-coming IPO.'s in the next year. It's making private equity investors responsible for some of the biggest offerings like HCA (TD)
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV