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Are IPOs taking a breather?
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August 14, 1996: 9:20 p.m. ET
The number of new stock offerings has dropped, but is the trend just temporary?
From Correspondent Katharine Barrett
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NEW YORK (CNNfn) - There's no denying that the initial public offering (IPO) market has taken a beating recently.
Just 74 new issues hit the market in July, down from 102 in June.
A number of high-profile deals either got postponed or went forward to lackluster results.
However, analysts say the declines don't tell the whole story..
After all, July still had more IPOs than January, so experts say the "meltdown" might be more like a "hiccup."
"We had too many issues that were in the system," said David Menlow, president of the IPO Financial Network. "It was too many offerings going through the revolving door at one time."
But now, Menlow said, "we are down over 15 percent in the total number of offerings that are in the system, and every statistic there is points to a market that is just catching a breath of reality."
There are still plenty of new stock issues in the pipeline.
According to Renaissance Capital, a leading IPO research firm, 133 new offerings are pending.
However, most deals set for this fall are very different from those reaching the market earlier this year.
According to Ryan Jacob, research director for the IPO Value Monitor, upcoming offerings tend to involve large capitalization deals involving well-known companies. (124K WAV) or (124K AIFF)
Few analysts expect a return to the frenzied pace the IPO market saw earlier this year.
However, with the help of some solid deals and some good earnings news in the third quarter, analysts expect a pickup in the number of new offerings by the fall.
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