Despite volatility in equities and economic turmoil in Europe, there is no shortage of companies trying to go public. The market for initial public offerings is on fire of late, with this week marking the busiest week for IPOs in four years.
A total of 12 IPOs are planned for the week of Dec. 12, and collectively they are expected to raise $3.8 billion. The headliners include the much-anticipated public debut of social gaming giant Zynga (ZYNG), known for popular games like "FarmVille" and "Words With Friends." Zynga is projected to raise near $1 billion, which would make it the largest tech IPO since Google went public. Fashion-apparel maker Michael Kors is also going public and is hoping to raise near $800 million.
The year has been a muted one for IPOs, with 28.5% of offerings debuting below the expected range, according to Connecticut-based research and investment firm Renaissance Capital. Tech IPOs like Groupon (NASDAQ:GRPN) and LinkedIn (NYSE:LNKD) debuted to much fanfare, but have seen share prices sink in recent months. Groupon dropped below its IPO price of $20 a share in late November before rebounding; Groupon closed Monday’s session at 10% above its IPO. LinkedIn, which closed Monday’s session at $71.29 is also still trading above its IPO price of $45 a share, but the stock is well off its high of $122.70.
Still, hopes are high for Zynga, which will be priced between $8.50 and $10 a share, and will list on the Nasdaq under the symbol ZNGO. The success of Zynga’s offering will inevitably lead to speculation on the status of a long-awaited offering from Facebook, which is likely to happen between April and June of next year, according the Wall Street Journal. Kathleen Smith, a principal and IPO investment advisor with Renaissance, said that while the IPO market is always risky, now is a great time for investors to look into IPOs.
“In this environment they’re all going to be priced below what is expected,” Smith said. “Usually in this kind of market, only the better deals get done--and they get done at better prices.”
- Zynga (ZNGA) - $1 Billion
- Michael Kors (KORS) - $792 Million
- Laredo Petroleum (LPI) - $333 Million
- Ingergy Midstream - $320 Million
- Bonanza Creek Energy (BECI) - $300 Million
- Sanchez Energy (SN) - $250 Million
- FusionStorm Global (FSTM) - $175 Million
- Luxfer Holdings (LXFR) - $151 Million
- Gazit Globe (GZT) - $132 Million
- Jive Software (JIVE) - $117 Million
- GSE Holdings (GSE) - $126 Million
- Mid-Con Energy (MCEP) - $108 Million