By LYNN COWAN
Halfway through June and with no U.S. IPOs on the immediate radar, it is looking likely investors will see no deals at all this month—the first June without an offering in more than 40 years.
Data provider Dealogic said its researchers looked back as far as 1970 and couldn’t find any year with no initial public offerings in June. The month is normally an active month for IPOs in the U.S., as bankers work to complete deals before the July 4 holiday.
Because it typically takes two weeks to run a road show, during which an IPO is marketed to investors before pricing, any company that wished to launch prior to July would have needed to kick off a road show by now. No road shows are currently in progress, according to the Website www.retailroadshow.com, and bankers said it is unlikely any road shows under consideration would launch in time for a June IPO.
“The window is probably closed until post-July 4. There’s definitely a possibility that June will have no IPOs,” said David Hermer, head of equity capital markets in the Americas for Credit Suisse Group.
There could be exceptions: Deals that were previously marketed and then postponed might only need a week and a half on the road. But the likelihood is slim that a company that previously postponed an IPO due to market conditions would suddenly find the current volatile market conditions welcoming.
There is no lack of IPOs that have been withdrawn, however. Since May 18, when Facebook Inc.
made its trading debut with disappointing results, no IPOs have priced, and 14 have been withdrawn. That is the longest period without an IPO pricing since a stretch between Aug. 16, 2011, and Oct. 13, 2011, according to Dealogic.
Right now, the backlog of IPOs stands at 53 deals seeking to raise $10.7 billion, based on filings made in the past six months; that compares with 99 deals seeking $17.7 billion at this time last year, Dealogic said.
The backlog data aren’t directly comparable to last year because new regulations adopted this year allow more companies to file their IPOs confidentially, so there are likely more in the backlog than are visible publicly.
Write to Lynn Cowan at email@example.com