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Big Surge in Secondary Stock Offerings Will Lead to a Major Uptick in IPO Profit Plays

William Patalon (May 13th, 2009) Writes:
In an odd bit of capitalist irony, the U.S. banking crisis could end up as the catalyst that finally jump-starts the long-moribund market for initial public stock offerings (IPOs). In fact, it already appears to be happening. U.S. banks - under government order to raise capital as a result of the recently completed bank stress tests, and desperate to shed the onerous shackles of the U.S. Treasury Department’s Troubled Assets Relief Program (TARP) - have been announcing billions in secondary stock offerings in recent days, and experts say many more such deals can be expected. Anadarko Petroleum Corp. (NYSE: APC), Bank of America Corp. (NYSE: BAC) and Ford Motor Co. (NYSE: F) yesterday (Tuesday) became the latest U.S. companies to pursue new sources of capital, announcing deals that involved offerings of stock or debt, or outright asset sales. Those announcements ...
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