The queue for IPOs is long, over 300 companies long. But few are going ahead: As of June 17, just 47 companies, valued at $4.6 billion, had undergone traditional IPOs in 2022 — 74% fewer than the same period in 2021, notes Dealogic.
Most of the 47 were small. Larger IPOs, valued at over $100 million, were scarce. eye care company
Bausch + Lomb
debuted in May with a valuation of $7 billion; that’s now $5.4 billion. Bausch Health also expected to list its Solta Medical skin care unit, but withdrew. “There are no major IPOs imminent in sectors that dominated the 2021 IPO calendar, including technology and healthcare,” said Justin Kotzin, General Atlantic’s head of capital markets.
What it takes to restore confidence is larger, profitable (or nearly profitable) companies that trade well in the aftermarket. It may take a while. Candidates that may fit into this bill include the Instacart grocery delivery app and
self-propelled unit, Mobileye.
Also in the pipeline: Corebridge Financial;
US International Group
life and pension matters; KinderCare Learning Companies, which operates childcare centers; and Steinway Musical Instruments Holdings, backed by hedge funder John Paulson. being further away
-backed chipmaker Ampere Computing, Thoma Bravo’s data analytics company Qlik Technologies, and social media company Reddit.
The Upside: CB Insights recently estimated that there are more than 1,000 unicorns worldwide, startups worth more than $1 billion. As Matt Kennedy, Renaissance Capital’s senior IPO strategist, says, “There’s a huge roster of potential deals, hundreds of unicorns, waiting.” Get in line.
The Census Bureau publishes the durable goods report for May. Economists predict new orders for manufactured durables are up 0.2% month over month to $265.8 billion.
Jefferies Financial Group and Nike report earnings.
The National Association of Real Estate Agents publishes its Pending Home Sales Index for May. The consensus estimate is for a reading of 99.3, roughly even with April. “The latest contract signing marks six straight months of declines and is at the slowest pace in nearly a decade,” said NAR chief economist Lawrence Yun.
holds two-day investor and analyst meetings in Memphis.
Hewlett Packard Enterprise
hosts an investor meeting with the company’s CEO, Antonio Neri.
S&P Dow Jones Indices publishes its CoreLogic Case-Shiller National Home Price Index for April. House prices are expected to rise 21% year over year, which would surpass the record 20.6% increase in March. House price gains have most likely peaked as the index reports data with a three-month lag. Virtually all forward-looking indicators point to a sharp cooling off in the housing market.
The Conference Council publishes its Consumer Confidence Index for June. Economists predict a position of 101, about five points less than May’s 106.4. The index has fallen sharply over the past six months as inflation remains a top consumer priority.
report quarterly results.
and Walgreens Boots Alliance hold conference calls to discuss earnings.
The Office of Economic Analysis reports personal income and spending data for May along with the Federal Reserve’s favorite inflation gauge, the core PCE, or personal consumption expenditure, index. Personal income is expected to increase by 0.5% month over month, while spending is expected to increase by 0.2%. This compares with gains of 0.4% and 0.9% respectively in April. The consensus estimate is that the core PCE index — which excludes volatile food and energy prices — is up 4.9% year over year, consistent with April data. Both Wall Street and Main Street are hoping for signs that inflation is slowing down.
The Census Bureau reports construction spending statistics for May. Construction spending is expected to increase 0.3% to a seasonally adjusted annual rate of $1.75 trillion.
The Institute of Supply Management publishes its Manufacturing Purchasing Managers’ Index for June. Forecasts call for a reading of 55, slightly less than May’s 56.1.
write to Luisa Beltran at [email protected]