Heavy Week Has IPO Pipeline Ready to Burst

With 43 deals slated to be priced, the new-deal pipeline is nearing its breaking point.
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The IPO syndicates are out there stoking the new deal pipeline: There are 43 deals slated to price this week. Compare that with the 31 reported for the week of Aug. 2 and you have a gut-busting increase in scheduled deal production of 38% since last week. If this is not a sign of impending summer shutdown, I do not know what is.

What is more remarkable than the ramp-up in deals is my obvious change of sentiment: I have grown cranky and gloomy about this market, which for you is good. The last thing IPO buyers need right now is a cheerleader for every deal in registration. You will see as you read on that I have suddenly become much more critical, swinging an ax and slashing opinions left and right! Don't take this as a sign that the cycle is over, however. There

are

deals to be bought this week. You just have to wade through a pile of ugly toads to find the princes.

Speaking of registration, I've not missed the fact that the number of current deals we are tracking that are waiting to go live stands at 336 as of this writing. One month ago, that number was 354, a drop-off of about 5%. This may not sound like much, but it's the first sign we've seen of a long-overdue slowdown, given the fact that that the number of deals tracked by us has remained pretty constant at about 365 to 370 since January. So, things are looking up by winding down.

Let's look at the lineup for the week:

Ben Holmes is the founder of ipoPros.com, a Boulder, Colo.-based research boutique specializing in the analysis of equity syndicate offerings. This column is not meant as investment advice; it is instead meant to provide insight into the methods of new and secondary offerings. Neither Holmes nor his firm has entered indications of interest in any of the companies discussed in this column. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Holmes appreciates your feedback at

bholmes@ipopros.com.