Well the slow movement in the market is starting to take its toll on the IPO market as well. This is typical for this time of year as many refer to it as the summer time doldrums. Expect this to come to an end as the seasons change. Many analysts expect that the end of this year will be especially volatile due to the US elections.
Last week we did see three IPOs raise $263 million, but there were no new filings for the week. Since the IPO market started the second quarter, 23 companies have raised over $100 million. A quick look at their performance shows that their average return is 44% and all are above their issue price. At the same point we can say that the steady gains in the markets, along with low volatility have definitely helped. The S&P 500 is up 5% since April 1.
This week, the most exciting IPO is a $250 million blank check company, which shows that the market slowdown has now affected the IPO markets. Analysts still remain optimistic though as strong returns from recent IPOs indicate a health IPO market.
First up is Highland Acquisition, a blank check company formed by the founders of Highland Capital Management. The Dallas, TX-based company plans to raise $250 million by offering 25 million shares at a price of $10. If you are interested in this offering youc an find it on the NASDAQ under the symbol (NASDAQ; HLACU)
Finally we have AzurRX Biopharma (NASDAQ: AZRX), which is developing non-systemic biologics for gastrointestinal disorders. The Brooklyn, NY-based company plans to raise $15 million by offering 2.1 million shares at a price range of $6 to $8.