M&A Bankers Developing Serious Jealousy Of IPO Guys

Investors are game for a shopping spree. Corporate executives are less so. In more ways than one.

In the first quarter, 36% of U.S. IPOs were priced above the range originally outlined in registration documents filed with the Securities and Exchange Commission. That was the highest proportion in any year since at least 2004, according to Renaissance Capital, an IPO research and investment-management firm.

Meanwhile, less than one quarter of IPOs so far this year have priced below expectations, also the lowest rate in at least 10 years.

Only 8,115 deals were announced worldwide in the first quarter of this year, the lowest number since 2003, according to data from Thomson Reuters. And while the combined value of $542.8 billion outpaced last year’s first quarter by about 10 percent, it is still 26 percent below the level for the period in 2011.

Bankers and lawyers have been publicly boasting about a nascent revival in mergers. In March, 97 percent of deal makers surveyed by the Brunswick Group public relations firm said they expected more deals to be announced in North America this year than in last.

But privately, many have conceded that for all of the improvements in the economy and corporate profits, executives still lack the confidence to sign for a big deal.

IPO Pricing Signals Surge In Demand [WSJ]
Mergers Slowed to a Snail’s Pace in the First Quarter, the Fewest Since 2003 [DealBook]
Investors Ignore Negativity at Their Peril [WSJ]

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10 Responses to “M&A Bankers Developing Serious Jealousy Of IPO Guys”

  1. Guesto says:

    But whos jealous of Shazar?

  2. Jon = vegetable says:

    In other news, Jon Shazar developing serious jealousy of Matt's ability to generate original thought and/or commentary. Bang up job Shazar!

  3. Hakuna Matata Guy says:

    How much do they pay you to copy/paste an article and add a sentence of your own thought? This is brutal. What has happened to this site? As you know, I tend to have a bright outlook on life, but what happened here!

  4. guest says:

    In other news, blind guy is jealous of one-eyed guy.

    M&A and ECM still overbuilt at most IBs, and it's painful.

  5. Quant Bot says:

    Original / Copied Ratio: 17 / 197 = 0.086


  6. M&A Guy says:

    Hey Shazster, a lot of Q1 '13 deals got pulled into Q4 '12 because business owners and exec's were trying to avert major tax increases. Please don't Ctr+c and then Ctr+v this without proper citation.

    – M&A guy

  7. guasto says:

    firemen getting pussy for the first time in the history of fire. or pussy.