Biggest Ipo Week In 14 Years
Initial public offerings totaling just less than $7 billion will mark the biggest week in IPOs since August 2000, the Financial Times reported today on data from investment advisory firm Dealogic.
Monday, July 28, 2014 - 00:00
Leading the pack is Synchrony Financial, General Electric's credit financing branch, which seeks to raise approximately $3.1 billion for a total valuation close to $20 billion.
This would make the GE subsidiary's IPO the largest such offering in the US financial services industry in 2014.
"It's a good indicator and good investment based on people who believe the economy is going to continue to improve as it relates to the consumer," David Menlow, the president of IPOFinancial.com, told Reuters.
Virgin takes to the skies
Across the Atlantic, Richard Branson's Virgin America filed for an IPO, selecting Barclays PLC and Deutsche Bank AG to manage and underwrite the sale. No details are yet available about the quantity or pricing of the shares on offer, but CEO David Cush said in the past that such an offering would be contingent on several quarters of earning growth.
Despite concerns abroad, investors in the US equities market still seem to have an appetite for fresh offerings, which will total 22 this week alone. Dealogic pointed out that a large proportion of these entries into the market tie back to the technology and internet markets, with a total of 42 tech-related IPOs this year. Of course, this makes some investors wary as they eye a rerun of the early 2000s' deflating tech bubble.
Seeking alpha with binary options
These frothy market conditions represent a clear opportunity to employ binary options on Nadex's registered US exchange, which provides a secure and transparent way to way to trade these contracts. With markets reacting positively to the upcoming week of offerings, buying options contracts can be an effective way to capitalize on market sentiment.
Conversely, investors can sell options on the Nadex exchange to hedge a portfolio already strongly invested in bullish equities index growth.
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