Initial public offerings, which withered after the Oct. 19 stock
market crash, appear to be making a comeback, with several recent
new issues being well received by investors.
According to IDD Information Services in New York, 94 common
stock offerings were completed in the six months from November
through April. This represents a drop of about 72 percent from the
340 initial offerings in the year-earlier period.
IDD, which tracks corporate financings, said the total value of
the offerings in the latest six months was $9.9 billion, down more
than a third from the $14.9 billion generated a year earlier.
``In the 1986-87 period, many deals were riding the wave of the
bull market,'' said Craig B. Jampol, syndicate manager at Gruntal &
Co., a New York-based brokerage firm active in the new-issues
market. ``That wave has crested, and, since the crash, investment
bankers and investors have become much more selective.''
Jampol points out that larger initial public offerings have been
more prominent since the crash.
``This is not to say that smaller offerings have not been
successful,'' he said, noting that a number of transactions valued
at $10 million to $25 million have been completed.
``The IPO market is beginning to wake up, and most of the
offerings we're looking at are very attractively priced,'' said
Ronald B. Koenig, chairman of Ladenburg, Thalmann, a New Yorkbased
investment firm. ``In fact, in terms of value, the IPO buyer is
probably looking at the best deals to come down the pike in a long
While some experts are bullish on initial offerings, others
think it may not be possible to sustain the current level of
Kenneth S. Hackel, president of Systematic Financial Management,
an investment advisory firm in Fort Lee, N.J., said the current
situation ``may only represent a temporary window of opportunity in
an otherwise lackluster market for new issues.''
Despite this guarded view, there have been encouraging signs
from several major initial offerings that have reached the market of
On Nov. 20, only a month after the market crash, a $210 million
offering priced at $10 a share and led by First Boston was completed
for the Borden Chemicals and Plastics Limited Partnership, which
operates the chemical and polyvinyl chloride resins business of
In a Jan. …