Paul Kedrosky's Infectious Greed
Finance & The Money Culture
Great IPO market data in the following slide from a recent Carlyle Group presentation:
wouldn’t this be great if it meant that the i-banks were being that much more efficient about pricing deals and that the companies going public were now not leaving so much $$ on the table.
Paul, does this take into the account the drop in the overall number of IPOs in general? I would suspect not. If not, it would be interesting to see it adjusted as it relates to the total number of IPOs done each year.
As “rob” says above, it would be nice if this trend of lower IPO price increases on first-day trading was more a result of efficiency. However, most likely it is just a lack in buying by investors and investors understanding better that buying into an IPO is not smart (wait, wait, wait, — now buy).
This chart would be much more telling if it included data BEFORE the bubble, so we could see if we have merely returned to pre-bubble normalcy (I’m sure we have – it’d just be cool to see graphical proof). I remember the Netscape IPO catching the public awareness for the 1st time back in ’95, and just a few years earlier were some high 1st-day IPOs in biotech.
Why would you wish for a time when investors are so stupid that they speculate on IPOs like crazy because they’ve been sold fools’ dreams of how internet companies are going to be the next GM? Unless of course, you would be glad to be the one conning them out of their money? All this chart shows is that the irrational behavior of the bubble hasn’t returned, and it’s a good thing it hasn’t.
does this chart account for the number of ipo deals lost to foriegn markets like the AIM? although i think that might be a bit oversold (no pun intended – and a bad one at that)
Paul Kedrosky‘s Infectious Greed
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