It’s been quite a week for IPOs. In fact the market hasn’t seen anything like it for about 18 months. What should you know about them?
A123 (Ticker: AONE)
A 50 percent leap in the shares of lithium-ion battery maker A123 Systems on their first day of trading has left many market watchers speculating we’ll sson see more share offerings in the clean-tech space.
The Watertown, Mass.-based A123 Systems is now worth over $1.9 billion, a striking valuation for a company that has yet to make a profit and still needs large-scale commercialization.
Industry executives and experts said A123's success shows investors have an appetite for green technology companies that lose money, but have tremendous potential.
Shanda Games (Ticker: GAME)
The initial public offering of Shanda Games looked like it was going to be a blockbuster hit, especially when it sold a total of 83.5 million shares, 20 million more than originally planned.
However Shanda quickly went from hot to not, writes the Wall Street Journal with investors fleeing the stock when it broke its IPO price within the first few minutes of trade.
The weakness may stem from analysts who question whether Shanda Games will fare as well as Changyou.com, whose shares have soared 139% since its debut on Nasdaq in April.
"Do we have clear visibility this year of this company? Will the two games still grow at the same pace? ... I don't think so," said Credit Suisse analyst Wallace Cheung.
Changyou.com, which raised $120 million in its IPO, is the top performing U.S.-listed IPO this year.
Artio Global Investors (Ticker: ART)
On Wednesday, Julius Baer Holdings sold 25 million shares of its U.S. asset management arm Artio Global Investors in an I.P.O. that raised $650 million.
“The Artio I.P.O. is, in our view, well timed and takes advantage of a positive financial market environment,” analyst Stefan Schuermann at banking and asset management group Vontobel, who reiterated a “buy” recommendation on Baer, told Reuters.
Other recent IPOs include Mortgage REIT Foursquare Capital and specialty hospital operator Select Medical Holdings . These three pricings will bring the total number of IPOs in 2009 to 30, easily on pace to top last years volume of 43 deals.
What's the trade?
I'd keep an eye on A123, says Karen Finerman, but right now the valuations are crazy.
As far as I'm concerned the winners are the banks that broker these IPOs, says Guy Adami. Keep an eye on Lazard and Greenhill .