Yesterday was another good day for investors hungry for new meat. A pair of prolific IPOs, those of Banco Santander Brasil
They went in different directions. Banco Santander's Brazilian spinoff closed slightly below its $13.40 offering price, but this was also a roughly $8 billion deal. It wasn't going to have much of a pop, given the ample supply of freshly minted shares.
Verisk Analytics fared considerably better. The insurance-risk specialist went public at $22, above its initial pricing range, and that still wasn't high enough. The stock closed 24% higher at $27.22 yesterday.
Back in the saddle again
We're just ankle-deep into October, yet we've already seen several Wall Street debutantes, including Education Management
It is refreshing to see the pipeline gushing again. Sure, there will come a point at which we get too much of a good thing. Once going public becomes so easy that even crummy companies with iffy financials and iffier prospects can sell an IPO, then it's time to worry. For now, the handful of underwriter-vetted offerings have involved primarily quality businesses that simply had to delay their debuts.
Moreover, investors aren't just engaging in frenzied nibbling on every company that goes public. Banco Santander Brasil joins Echo Global Logistics and Shanda Games as recent IPOs trading below their offering price.
New stocks are coming, and investors aren't getting greedy. That's the perfect combination to keep the new offerings coming at a sober and steady pace.
Do you own any stocks that have gone public in 2009? Tell us all about it in the comment box below.
Longtime Fool contributor Rick Munarriz is glad to see the IPO spigot flowing again. He owns no shares in any of the companies in this story and is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.