IPOBoutique Brief 2.27.2015 – Secondary Bonanza

While IPO issuance up to this point have been slower than last year, the underwriters have not been afraid to bring out follow-on offerings.

A total of 25 secondary’s were priced for the week of February 23rd which totaled in the multi-billions including a record-breaking offering from Actavis (NYSE: ACT).

“Based upon the lack of IPOs last week, the underwriters used that opportunity to capitalize on bringing a substantial amount of secondary’s to market,”  senior managing partner of IPOBoutique.Com, Scott Sweet, said. “Given the market is near all-time highs, I feel that secondary’s will continue to be brought out in an aggressive manor.”

Some of the secondary’s brought out this week were, in part, to pay for acquisitions. Certainly that was the case with Actavis. What this means for the IPO market is still to be determined. But our sources indicate that there still remains a robust pipeline and March will, in all likelihood, be a more active month for the IPO market.

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