What to expect from the 2013 IPO market? Business journalists and industry experts are weighing in following the debuts of Zoetis, Bright Horizons Family Solutions, Boise Cascade and other companies.
"Now, we're hearing optimism about global growth and the ability of governments to address the fiscal issues that are going on," Scott Cutler, executive vice president and head of global listings at NYSE Euronext told Reuters for an article entitled “IPOVIEW-As U.S. stock market climbs, IPOs find demand again.”
As equity markets hit multi-year high marks, investment bankers are pushing to take businesses public, the wire service reports. Last month, 76 companies sold shares in the U.S., including both initial public offerings and secondary offerings, raising a total of $18.2 billion and marking the best start to a year since January 2008, according to Reuters. The vast majority of offerings were in line or above initial price expectations.
For instance, child care services provider Bright Horizons (BFAM) priced at $22 the night before listing, above the range. BFAM opened on Jan 25 at $27.75 on 1,725,000 shares, and closed the day at $28.32, an almost 30% appreciation over pricing. The company raised $222 million in the offering and was valued at $1.8 billion at the close of trading, according to Child Care Services Provider Bright Horizons' IPO Warms Wall Street, a blog on the company’s public offering.
Meanwhile, Pfizer spinoff Zoetis, which discovers, develops, manufactures and commercializes animal health medicines and vaccines priced at $26, above the range, and opened at $31.50, over a 20% increase. Zoetis ranks as the largest IPO since Facebook.
There are more deals in the pipeline including those in technology, healthcare and consumer services sectors.
