More IPOs Coming to Market: Deutsche Bank Exec
Today maked a successful IPO for Chinese real estate Internet portalSouFun Holdings, with shares opening up at $67.00—a 57 percent increase above where they were priced. The debut follows the slowest week for initial public offerings since February.
"There is definitely a slow-down between the mid-part of August into Labor Day. But in the post-Labor Day time frame, there will be an acceleration of [IPOs] pricing—with two to three transactions priced next week," Brad Miller, global co-head equity syndicate desk, Deutsche Bank told CNBC's "The Strategy Session" on Friday.
"Volatility has definitely had an impact on new issuance and I would say right now timing of launching your transaction has never been more critical to get investor demand, get better pricing dynamics," Miller said.
Equally as important is to get that "after market follow through where you see institutions buying, filing out there positions in stocks trading to a premium in the after markets," he said.
"There are ten IPOs on the street in the U.S. alone currently being marketed," Miller said, referring to a road show during which management of a company issuing securities or doing an IPO travels around the country giving presentations to analysts, fund managers and potential investors.
If you look at IPOs that have done well in 2010—including ADR's (American Depository Receipt) and ADS's (American Depository Shares)—a little more than 110 transactions priced year-to- date, "you've got 42 of them have traded to a premium," the Deutsche Bank executive said, adding, "if your a growth investor this is an opportunity to pick up performance in your portfolio."