The test for tech will be CyberArk (CYBR), looking to raise 5.4 million shares at $13–$15. This is an Israeli cyber security company, and while it is a small deal we have not seen a tech deal in a while. The last one was MobilEye (MBLY), another Israeli firm that specializes in collision detection, which debuted July 31, priced at $25, and is up 91 percent since then.
With Citizens Financial and CyberArk, a big test looms for the U.S. IPO market, with a whopping twelve IPOs scheduled for next week. These include:
2) Grupo Aval (AVAL), Colombia's largest bank;
3) two oil & gas plays, CONE Midstream Partners (CNNX) and Vantage Energy (VEI);
4) Travelport Worldwide (TVPT), a travel e-commerce company;
5) Atento (ATTO), a Luxembourg-based company controlled by Bain that runs call centers and other customer outreach platforms; and
6) Smart & Final Store, a high-end food retailer that is aiming to raise nearly $200 million.
If all these price within their ranges and trade well, then we can discount the so-called Alibaba effecton the IPO market.
These are large deals as well. The average IPO floats anywhere between $100 and $200 million, but look at the size of these deals:
Citizens Financial $3.3 billion
Grupo Aval (AVAL) $1.1 billion
Vantage Energy $600 million
Travelport Worldwide $450 million
Smart & Final Stores $175 million
Altogether, we are talking about roughly $7.5 billion in fresh stock coming to market. While that's not as much as Alibaba's $20 billion deal, it is a huge amount to collectively dump on the market a few days after one of the biggest IPOs of all time.