August was Hot, the IPOs Not

Includes: AYR, EDU, EVR, INWK
by: Evelyn Rubin

Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):

IPO Market Was Soft in August, But Months Ahead Look Solid

  • Summary: After being spoiled with two mega-IPOs in 2004 (Google) and 2005 (Baidu), this August's IPO market was tepid. Seven IPOs that were set to raise $2.9 billion in August were canceled or postponed, and seven companies raised $1.7 billion. For comparison's sake, in August 2005, 31 companies raised $5.8 billion. There were three bright spots this year: Evercore (NYSE:EVR), Aircastle (NYSE:AYR), and InnerWorkings (NASDAQ:INWK) went public with double digit percentage increases. And the IPO bench is packed with 160 companies set to launch, the highest number since October 2004.
  • Comment on related stocks/ETFs: Bill Simpson's insight into Evercore's IPO was spot on, and Market Participant called Aircastle an aircraft REIT. Clearfish Research took a look at InnwerWorkings back when they filed their S1. There is one IPO on deck this week: Chinese education provider New Oriental Education (NYSE:EDU). Seeking Alpha provides coverage of all IPO filings.