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Aiming to get IPOs done while the window for deals is open, Wall Street hopes to sell a whopping 16 initial public offerings this week.
If all 16 deals go off, which would be a feat in itself, it would be the busiest week in quite some time, even rivaling the 20 and 17 IPOs that were sold in all of February and January, respectively, says Renaissance Capital.
Investors would have to go back to the week of Nov. 12, 2007 to remember a week with more IPOs, 21, says IPOScoop.com.
There are some big deals among the bumper crop of IPOs. Ally Financial, the former financing arm of General Motors, is expected to raise $2.5 billion by selling 95 million shares between $25 to $28 a share. This deal will be a good test of investors’ appetite for deals, since the company has been trying since 2011 to sell shares to the public.
Another headliner deal is hotel chain La Quinta, which is being brought to market by private equity firm Blackstone. The company said it will sell 37.2 million shares at an expected price range of between $18 and $21 a share.
One of the week’s largest deals after Ally Financial is Sabre, which operates technology-based systems for travel, including online booking site Travelocity. The company is expected to raise $850 million by selling 44.7 million shares for between $18 and $20 a share.
Wall Street is eager to launch IPOs since investors have been so receptive to them. There have already been 71 IPOs this year, says Renaissance. At that clip, there would be 284 IPOs this year, which would blow away last year’s 222 deals and be the best since the 343 deals that went public in the tech-stock boom of 2000, says Jay Ritter, professor of finance at the University of Florida.
But getting all the week’s expected deals off might be too much for the market to bear. During the week of Nov. 12, 2007, just 13 of the 21 expected deals were actually sold, says IPOScoop.com.
Wall St. peddles whopping 16 IPOs this week. Are you buying? | America's Markets
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