|
Hot IPOs scarce in '97
|
 |
January 30, 1997: 8:51 p.m. ET
Analysts expect activity to pick up, but see few 'glamour' IPOs in pipeline
From Correspondent Rhonda Schaffler
|
NEW YORK (CNNfn) - Investors looking for a hot new stock are having trouble finding one these days.
Unlike 1996, which had a plethora of hot initial public offerings, 1997 has seen a slump in IPOs so far this year.
January has been the slowest month for IPOs in two years, with only about two dozen new stocks launched during the month.
Ryan Jacob, research director for "IPO Value Monitor," said interest in initial offerings has dropped because many companies floating new issues haven't been solid performers.
He said many of January's IPOs involved companies in the medical-products, biotechnology and pharmaceutical industries, "sectors that were among the worst performers in 1996."
Yet so far, January's crop of IPOs has been quietly successful.
Several little-known issues are outperforming the broader market, providing investors a return of about 8.5 percent -- nearly twice that of the benchmark Standard & Poor's 500 stock index.
While analysts expect IPO activity to pick up dramatically in February, experts say most deals will be small -- and won't generate much excitement.
Small IPOs from equipment manufacturers or personal-service providers have replaced 1996's "glamour" offerings, such as those involving the Planet Hollywood restaurant chain or fashion-design house Donna Karan.
Yet despite all the hype that "glamour" IPOs brought last year, many new stocks actually underperformed the market during 1996.
Manish Shah, publisher of the "IPO Maven," said that as a result, investors are showing less and less patience with development-stage companies. (151K WAV) or (151K AIFF)
|
|
|
|
|
 |
|
