The Norman Transcript

Headlines

November 25, 2012

Week ahead:Facebook, volatile market still chill IPOs

NORMAN — Making a killing on initial public offerings used to be easy.

At the peak of the technology boom, little more than a decade ago, a plentiful supply of companies vied to sell stock on the exchanges, and investors were assured mouthwatering returns.

These days, the deals are fewer and the returns more modest.

Companies are set to raise more than $45 billion through IPOs this year — the most since 2007, according to data provider Dealogic. But if you scratch the surface, there are signs that the market is less healthy than it appears.

Almost a third of the money raised in IPOs this year came from one deal, Facebook’s $16 billion offering in May, and the number of companies taking themselves public may end at a three-year low.

The pipeline, or backlog, of companies planning to sell stock is also thinning.

“It’s a reflection of the psychology of the market today. It’s not strong. It’s moderate to weak,” said Rob Lutts, chief investment officer at Cabot Money Management in Salem, Mass.

While 437 companies have filed for an IPO this year, 178 have withdrawn or postponed their planned listings, Dealogic data show.

The state of the IPO market matters beyond Wall Street. Besides giving investors the chance to buy into fast-growing parts of the market, offerings give companies the money to expand and hire workers.

Scott Cutler, head of global listings at NYSE Euronext, which runs the New York Stock Exchange, estimates that more than 90 percent of a public company’s employee growth comes after it has listed on an exchange.

IPO activity is dictated largely by the health of the overall stock market. Falling markets discouraging companies from going public.

The Standard & Poor’s 500 is up 11 percent this year, but the advance has been punctuated by sharp declines when investors fretted about European debt, the election and, now, a looming “cliff” of tax increases and government spending cuts.

Text Only | Photo Reprints
Headlines
  • Body 1 Police identify woman found dead Monday

    Norman police have identified a woman found dead in her home at 2202 Donna Drive Monday afternoon. Police responded at 1:25 p.m. to the residence of Cassandra Thompson, 30, after receiving a report that she had not shown up for work ...

    July 29, 2014 1 Photo

  • Residents speak out about document regarding shelter photos

    Norman and metro-area residents showed up in overwhelming numbers, many in red shirts, for an Animal Shelter Oversight Board meeting Monday night demanding for their opinions to be heard....

    July 29, 2014

  • Mixon’s attorney says athlete acted in self-defense

    The attorney for Oklahoma running back Joe Mixon says the incident that left a 20-year-old female OU student with multiple facial fractures was a case of self-defense. “This past Friday morning, Joe Mixon found himself in a situation ...

    July 29, 2014

  • Cool snap brings heat relief to Oklahoma, Arkansas

    OKLAHOMA CITY — The dog days of summer are coming in with a whimper. Weather forecasters say a cold front headed for Oklahoma and Arkansas will bring unseasonably cool temperatures and a chance of rain through next week....

    July 29, 2014

  • Be ready for ‘prolonged’ Gaza war, prime minister says

    GAZA CITY, Gaza Strip — Signaling an escalation of Israel’s Gaza operation, Prime Minister Benjamin Netanyahu told Israelis Monday to be ready for a “prolonged” war, and the military warned Palestinians in three large neighborhoods to ...

    July 29, 2014

  • FBI defends search for Oklahoma City bombing video

    SALT LAKE CITY — The FBI thoroughly searched its archives and found no evidence that more videos of the Oklahoma City bombing exist, agency employees told a judge Monday in a trial that has rekindled questions about whether any others were ...

    July 29, 2014

  • County moves forward on nursing home bonds

    Cleveland County commissioners on Monday approved a resolution authoring a county trust to issue up to $15 million for a nursing home on the site of the former Whispering Pines nursing home at 501 E. Robinson St....

    July 29, 2014

  • Deal to improve health care costs $17B

    WASHINGTON — A bipartisan deal announced Monday would authorize about $17 billion to help veterans avoid long waits for health care, hire more doctors and nurses to treat veterans and make it easier to fire executives at the Department of ...

    July 29, 2014

  • Breast Care Center will relocate to HealthPlex

    The Norman Regional Health System will move its Breast Care Center to the HealthPlex campus, making it more accessible for patients, hospital officials said Monday. At its monthly board meeting, the Norman Regional Hospital Authority ...

    July 29, 2014

  • Little Axe Health Center hosting blood drive

    Norman-area blood donors this summer will not only save lives when they donate with Oklahoma Blood Institute (OBI), they’ll also get “Feel Cool” T-shirts and two tickets to the Oklahoma City Zoo....

    July 29, 2014