Everyone Wants In on Blackstone Deal

Blackstone's IPO is shaping up as a huge hit on Wall Street, even if some people can't stop sweating the firm's tax outlook.

The private-equity shop's $4.75 billion initial public offering is slated to be priced after the market closes Thursday. The deal is drawing frenzied demand, according to observers who track the IPO market.

One watcher said demand translated to an oversubscription from hungry investors equivalent to five to six times the shares being offered. That could mean Blackstone will see a spike reminiscent of derivatives exchange Nymex (NMX Quote), whose shares more than doubled on their open last November and ended up with a 125% first-day gain, and hedge fund firm Fortress (FIG Quote), which registered a 68% first-day gain back in February. ...