The IPO markets will take a break this week which is fairly common. There are no IPO's scheduled for this week and as we look back over the last 20 years it is common to see a 1 to 2 week pause here in February. This doesn't worry analysts though as many are still quite bullish on not only the number of new issues we likely see this year but also the total amount of capital raised.
Investors on the other hand continue to demand clear, and reasonable valuations. Last weeks launches all came in below analyst expectations, but closer to the valuation that investors had shown demand for.
Last week the three names that launched had to either offer less shares or price below their initial ranges to grab the attention of IPO investors.The good news was that this did work and investors came to invest, causing all three names to either show a positive first day return, or neutral.
Foundation Building Materials (NYSE: FBM) was the best performer with a nice 11% gain on its first day. This came only after a 20% reduction in its initial pricing. Still this was considered a success as the company was able to raise $179 million and show a strong demand for its adjusted pricing.
The largest of the names Mauser Group (NYSE: MSR) was supposed to be the headline of the week as the company was looking to raise $265 million, but at the last minute Stone Canyon, a private equity firm stepped in and bought them for $2.3 billion.
Despite the quiet week for investors, the IPO market is still attracting new filings such as FDO Holdings (NYSE: FDO) a flooring retail store, and of course, Snap, Inc. (NYSE: SNAP) which we will hear more and more of over the coming weeks.