Analyst: 1000 IPOs expected for next two years

An avalanche of IPOs are on the way, if you believe Deutsche Bank’s Mark Hantho.

Deutsche Bank Global Head of Securities Mark Hantho proclaimed the great IPO market boom of 2017 & 2018 is coming. He made his comments on CNBC on the first trading day of the year.

Kudos to Hantho for going on television and putting out a bold prediction and backing it up with facts.

“It’s the global economy but I would say the U.S. is going to be the largest benefactor of that. We think that two-thirds of that activity will be here in the U.S.”

We agree in a ‘bullish’ IPO market for the short-term…and in doing sod we wrote yesterday that a flurry of late December filings will likely bode well for a strong beginning to 2017.

But, it’s not all great news and Deutsche Bank’s Hantho goes on to say that in terms of volume, both Asian and European companies are the ones most in need capital. And with that being said, we have seen a number of Asian companies raise cash on American markets with a mixed bag of success.

Remember, ZTO Express (NYSE: ZTO) ?

The Fed-Ex of China upsized and priced $1 above the range only to see the deal trade lower and, as of this morning, trading 38%  below the offering price.

With a higher volume of IPOs expected, regardless of the exchange, it is critical to  gauge the demand and aftermarket appetite for each company on an individual basis. Once deals begin to come, it will be a delicate situation and the ability of particular underwriters to allocate shares properly will be important.

Another story making headlines…valuation concerns of technology company. MIT Technology Review discusses a tech ‘unicorn’, DropBox, and wonders if companies like that will have enough paying customers.

Again, pin-point pricing and proper allocation by underwriters will play strong roles into ‘unicorns’ going public.

---

Want to have true color about the deal? Are the big players in? When are the books closing? Can I make money on this deal?

We have those answers…and so do our subscribers. Inquire here to be ahead of the market. Our track record takes the guessing game out of the operation.