IPO Market Could Be Best Since 2000
Shares of China Sunergy soared Thursday in their market debut. The Chinese solar-energy firm is just one of the many public offerings expected to do well this year. On “Power Lunch,” Steve Gelsi, IPO reporter at MarketWatch, told CNBC’s Bill Griffeth that 2007 could be the richest year in the IPO market since 2000.
“At last check we had about $18 billion in initial public offerings this year -- and that’s the hottest we’ve seen” since the dot-com bust of 2000, said Gelsi. He says that the Dow’s record run and the amount of money in the private equity firms are contributing to the success of the IPO market.
“There is a big trend in energy as well. It is not just the alternative energy, but traditional energy companies that are out there drilling for oil and gas,” said Gelsi. He pointed to Continental Resources, which went public this week.
He also mentioned the Blackstone Group, which in March announced plans to go public. He does not believe it is completely smooth sailing for Blackstone at this time. “It’s an interesting deal that could get a bit of scrutiny. If you have labor unions coming out against it, maybe the pension funds won’t be as interested in buying into the IPO,” said Gelsi.