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IPOs Looking Iffy

Six secondary offerings price, but IPOs still look iffy. HUGE offerings of IPOs and secondaries still waiting.

6 secondaries priced this morning, and the good news is every single one of them is trading above the secondary pricing at midday:

  1. Eurand, 8.5 m. shares at $11.25
  2. Brigham Exploration, 14 m shares at $10.50
  3. Marshall & Isley, 115 m shares at $5.75
  4. Nara Bancorp, 8.4 m shares at $7.50
  5. Whitney Holding 22 m shares at $8
  6. Macerich, 12 m shares at $29

The bad news is buyers of IPOs are holding their noses at some of the recent offerings.

Example: AGA Medical Holdings, a medical device maker, priced its IPO--13.8 million shares--at $14.50 yesterday, after price talk of $19-$21 earlier in the week. That's where it's trading--$14.50, and it looks like the underwriters are actively supporting the stock, since there is a line drawn right across $14.50--the stocks doesn't drop below that level.

  • Slideshow - The Largest IPOs in US History

The reception of IPOs is getting a lot of attention--there is a HUGE backlog of deals on the sidelines. A lot of companies need to raise money, and given the strong market conditions sellers will be trying to push out whatever they can.

Problem is, with so many motivated sellers, buyers are only interested if the price is right.

Not much of a pop from these IPOs, which went public in the last month or so:

(from initial pricing)

  • Apollo Commercial Real Estate down 9%
  • RailAmerica down 7%
  • Banco Santander Brasil down 2%

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