Trader Talk

IPOs: 2 Things That Can Trigger Market

IPOs keep piling up: when are firms going to pull the trigger?

Scott Cutler, head of U.S. listings for the NYSE, told me on our air this morning that 498 IPOs were in the pipeline at the NYSE and Nasdaq, the biggest backlog in 10 years.

What will get the IPO market moving? Cutler told me that the market was awaiting two catalysts, both interrelated:

1) more certainty in Europe, and

2) the CBOE Volatility Index (VIX) below 30...why? When the VIX is above 30 (indicating high volatility) IPOs historically drop dramatically.

And there are plenty more out there sniffing around: Cutler told me that the "dark pipeline" of foreign companies (confidential issuers that are seeking but have not yet filed for a U.S. listing) is at the highest level in years.

Don't expect much in the next couple weeks.

However, there is a small deal on the schedule this week: Ubiquiti , a wireless networking firm, is seeking to float 7 million shares at $20-$22 at the Nasdaq.

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