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IPO Pricings on the Rise, Including One of Year's Biggest

Monday, 27 Sep 2010 | 3:22 PM ET

As the fourth quarter of 2010 approaches, we have seen many IPO (initial public offering) filings, but not nearly as many pricings. By the looks of it, that is about to change. One of the year's biggest IPOs is scheduled this week.

"We are up to about $75 billion in filling right now, 170 transactions—that's up from 120 just earlier this summer," Tom Fox, head of global capital markets Americas at UBS , told CNBC's "The Strategy Session" on Monday.

Airline Consolidation Will Continue: Analyst
Southwest Airlines announced Monday it will buy AirTran for approximately $1.42 billion. Helane Becker, of Dahlman Rose, tells CNBC consolidation in the sector will continue.

"There is a big backlog, but the good news is we have 11 deals out on the road right now. Two priced last week, they are going well," Fox said.

"The markets are waiting to see how these deals price. And more importantly how do they trade in the after-market because in the summer this was a big problem. But early indicators are very positive," he said.

Several IPOs are pricing this week, including:

  • Liberty Mutual Agency Corp, the Boston-based insurance group, plans to raise $1.2 billion by offering 64 million shares between $18-$20 per share. Potentially, this could be the biggest IPO of the year. Citi and Bank of America MerrillLynch are the lead underwriters. (Symbol when priced: LMAC)


  • Amyris Biotechnologies, a bio-fuel company, plans to raise $101 million by offering 5.3 million shares between $18-$20 per share. Morgan Stanley , Goldman Sachs and J.P. Morgan are the lead underwriters. (Symbol when priced: AMRS)


  • Campus Crest Communities, a REIT focused on student housing properties, hopes to raise $383 million by offering 28.3 million shares between $12.50-$14.50 per share. Raymond James, Citi and Goldman Sachs are the lead underwriters. (Symbol when priced: CCG)


  • China MingYang Wind Power Group, plans to raise $375 million by offering 25 million shares between $14-$16 per share. Morgan Stanley, Credit Suisse and Bank of America Merrill Lynch are the lead underwriters. (Symbol when priced: MY)

"We're pretty much neutral at this point in time trying to get through the end of the year and see where we are at that point. There could be some turnover across the Street the beginning of next year," Fox said, adding, "time will tell."

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