The landscape for IPO’s has changed greatly. In the past IPO’s were distributed by underwriters to their wealthy clients or to institutional clients as sort of a “thank you” for doing business with them. In the past if a client was fortunate enough to be granted shares in an IPO it was almost a forgone conclusion he would make 15% to 20% on his money the very first day the stock traded.

Today most of the underwriters have either disappeared or opted to be converted into banks to survive the economic holocaust of 2008. Risk is currently not in their vocabulary. However we have seen a slight glimmer of hope in September of this year when a couple of IPO deals went to market and actually had positive aftermarket performance. Also there has been a 50% increase in the number of IPO filings over 2008.

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Other posts of the serie

  1. Going Public in the Next 12 Months– Part 1 - November 16, 2009
  2. Going Public in the Next 12 Months – Part 2 - November 17, 2009
  3. Going Public in the Next 12 Months – Part 3 (This post) - November 18, 2009
  4. Going Public in the Next 12 Months– Part 4 - November 19, 2009
  5. Going Public in the Next 12 Months – Part 5 - November 20, 2009
  6. Going Public in the Next 12 Months - Part 6 - December 1, 2009
  7. Going Public in the Next 12 Months - Part 7 - December 2, 2009
  8. Going Public in the Next 12 Months - Part 8 - December 3, 2009
  9. Going Public in the Next 12 Months - Part 9 - December 4, 2009
  10. Going Public in the Next 12 Months - Part 10 - December 7, 2009