Dealmakers are hoping the upcoming Visa IPO will be hot enough to thaw out the current deal climate.
With the exception of a handful of SPACs, the 2008 market for initial public offerings has been off to a frigid start.
According to data tracker Dealogic, money raised so far this year adds up to less than one-quarter of the $21 billion that was pulled in by IPOs in the fourth quarter of 2007.
Making matters worse, 2008 offerings are being canceled or postponed at an average of 15 deals a month — that’s over twice 2007’s average of 7 a month.
But the Visa deal could bring some heat to the market next week with an offering seen as being the biggest in U.S. history.
An IPO of that size could fatten up the first quarter –making it the most robust quarter for IPOs in the past 3 years.
The question though is whether momentum from Visa’s IPO will drive interest back to the U.S. IPO market, or go down in the history book’s as a one-off. Time will tell.
| Withdrawn US Listed IPOs | ||
| Date | $ mil | # |
| Feb 2008 | 2,208 | 13 |
| Jan 2008 | 4,151 | 17 |
| Dec 2007 | 1,013 | 9 |
| Nov 2007 | 5,364 | 14 |
| Oct 2007 | 2,021 | 11 |
| Sep 2007 | 665 | 6 |
| Aug 2007 | 1,090 | 5 |
| Jul 2007 | 226 | 3 |
| Jun 2007 | 1,148 | 6 |
| May 2007 | 774 | 6 |
| Apr 2007 | 1,329 | 7 |
| Mar 2007 | 425 | 4 |
| Feb 2007 | 819 | 7 |
| Jan 2007 | 347 | 3 |
| IPO Value | ||
| Date Priced |
US Listed IPOs ($ mil) |
Global IPOs ($ mil) |
| Q1 08 | 4,414 | 11,702 |
| Q4 07 | 20,884 | 109,524 |
| Q3 07 | 13,309 | 51,523 |
| Q2 07 | 19,140 | 94,172 |
| Q1 07 | 12,013 | 40,686 |
| Q4 06 | 20,090 | 101,329 |
| Q3 06 | 7,467 | 46,944 |
| Q2 06 | 12,056 | 69,668 |
| Q1 06 | 10,733 | 38,744 |
| Q4 05 | 9,073 | 72,419 |
| Q3 05 | 11,537 | 35,373 |
| Q2 05 | 9,086 | 39,452 |
| Q1 05 | 10,905 | 27,958 |
Data source: Dealogic
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