DealZone

Can Visa bring the heat?

March 14, 2008

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Withdrawn US Listed IPOs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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