The latest dead period in the
came to an end today as natural-gas company
Western Gas Equity (
made its debut on the New York Stock Exchange.
The company raised $378 million by offering 17.2 million
shares. The $22-per-share price tag is above WGP's expected range
of $19 to $21 a share.
Early returns for the new stock are impressive. Despite
pricing above its expected range, WGP shares rose 27% to $28.13 a
share. The stock's big bump bodes well for an IPO market that has
been completely silent for the last two weeks.
Chinese social platform provider
was the last company to go public on a U.S. exchange, on November
is largely to blame for the IPO drought. With so much uncertainty
in the market right now, companies have been hesitant to go
Only seven IPOs have priced in November and December so far.
That's a far cry from last year, when 27 companies went public in
November and December, and 2010, when there were 40 IPOs.
In fact, the last two months of the year are always a busy
time for the IPO market. Since 2003, an average of 33 companies
have gone public in November and December. So only seven IPOs
two-thirds of the way into the usually busy two-month stretch is
a noticeable decline.
Perhaps Western Gas' first-day success will change that.