Can Visa bring the heat?
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 $21 billion that was pulled in by IPOs in the fourth quarter of 2007.
Making matters worse, 2008 offerings are being canceled or postponed at an average of 15 deals a month — that’s over twice 2007′s average of 7 a month.
But the Visa deal could bring some heat to the market next week with an offering seen as being the biggest in U.S. history.
An IPO of that size could fatten up the first quarter –making it the most robust quarter for IPOs in the past 3 years.
The question though is whether momentum from Visa’s IPO will drive interest back to the U.S. IPO market, or go down in the history book’s as a one-off. Time will tell.
|Withdrawn US Listed IPOs|
||US Listed IPOs ($ mil)
||Global IPOs ($ mil)|
Data source: Dealogic