You're watching...
IPOfinancial.com President David Menlow on the outlook for the IPO market and how investors can gain from secondary market offerings.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Despite that 29%.
Drop in the amount of funds raised on a year over year decline in offerings with about IPOs that we're still lots of money to be made in initial public offerings last year -- The big returns for the year's best performing IKEA us.
To -- pro loves.
It led the way up more than a 146%.
Not bad -- -- -- guide where -- of course home street bank -- star an intercept pharmaceuticals all up triple digit David.
Little -- we now proto labs.
What lies ahead for 2013 and could mean.
Another market throwing out there that could produce hefty returns for you that might not be as risky as jumping into an IPO.
David -- with a guy who knows he's the president of IPO financial -- -- And I'll tell -- something.
We go back.
Please we go back to 19981999.
The go go -- -- the globe dot com and all these crazy IPOs and everybody thinks that if I can get in on one currently.
That's the ticket.
Just that's still ring true.
No it doesn't and I think the simple reason is technology has just rip this market apart when it comes to.
Information and everybody knows that they want to slice of the pie now.
And that -- seems to be getting smaller and smaller so yes you know about the deal but maybe get a hundred shares what's the point.
-- -- hundred shares what is the point there but let's let's talk about the IPO market here you have.
Ever since 2006 certainly there was a slowdown from 2010.
-- 112012.
Another slowdown what do you expect for 2013.
Well now for 2013.
Money is vibrating and everybody's pockets and in the cash balances of these brokerage firms and accounts -- you.
We are going to have a -- Upward bias toward good deals that are gonna come public.
But again it's going to be a very selective market and it's very clear that investors rule -- it's no longer the issuers.
And we never really know OK who's gonna come public but.
There are some names of David literally ran Evan just handed me this list some unnamed some of this for you Twitter everybody's talked about that can really think they're gonna pull the trigger and go public -- At some point they are good that this is going to be -- situation but again.
They're gonna come out with a small offering relative to what the market valuation is it's not going to be another -- out -- name.
Box gilt Groupe and we know they've stumbled a little bit lately saying we wonder will they end up going public or to -- that we don't square survey monkey tableau.
Those names but David you're here to say but there's a better way maybe to come -- to something that's not necessarily an IPO but still sort of a fresh opportunity.
Right the syndicate market is not just about IPOs -- it is also about the companies that are already public that say.
We need more money and they come to what's called the secondary market.
It can be any company that is trading now and -- -- for any of these markets here in the US.
And they say we would like to issue 152030.
Million more shares because of capital improvements acquisitions.
Deleveraging whatever might be.
And these offerings are outstripping.
IPO pricing on the scale of more than five to one.
And it's not getting any media attention because it doesn't have the possess tell people how they can invest in secondary well what to look for the first thing is if you have a brokerage account it doesn't mean that the broker that -- dealing with if you're speaking to somebody.
Is somebody that is wired into the syndicate department.
If you want a secondary offering of a company that is gonna issue more shares you really have to ask do you get syndicate allocations if the broker says no.
Don't even stepping further you have to find a brokers that are wired in and once you do you'll end up getting greater allocation -- Notice that at around 415 in the afternoon on whatever day that's when they announced secondary -- and then there's a limited window wasn't there before you can jump in and buy some of those shares.
I used to have all black hair and world -- happen via.
It is a very difficult period because these are called overnight offerings -- -- blocks that come out.
And institutions that generally have all the inside -- some information.
No absolutely their website people can be keep their eye on -- have to really beyond the distribution list from the brokers have to deal with -- look at -- broker yet when you have to basically.
Be -- aware -- have to ask them and you have to act quickly but.
This is where were putting 90% of our resources cause nobody gets -- information secondary market offerings David Manilow.
Thank you very much for that is we hope everybody -- thank you.
--
