Peloton, MercadoLibre Add to Post-Earnings Offerings Spike
Peloton, MercadoLibre Add to Post-Earnings Spike in Stock Sales
(Bloomberg) -- Peloton Interactive Inc. and MercadoLibre Inc. joined a wave of new stock offerings whose number is unmatched over the past two quarters.
At least 18 registered secondary offerings were announced on Monday in the U.S., the most in a single day since March, according to data compiled by Bloomberg. That was followed by more launches Tuesday morning as sellers attack a small window between the earnings-related blackout and the start of U.S. holidays next week.
“We advise companies that as the calendar moves into December it gets harder,” said Ben Darsney, head of Americas equity capital markets at Deutsche Bank. “Including this week, there’s really only three clean weeks left before the end of the year.”
The flood of new launches follows a solid earnings season that compounded bullish views around equities. Goldman Sachs Group Inc. strategists on Tuesday boosted their target for the S&P 500 on the third quarter results as well as ebbing fears about inflation and interest rate hikes.
Recently priced secondary offerings have reinforced the positive mood. This quarter’s deals have returned 1.3% on average from the offering price in their first session, according to data compiled by Bloomberg, with additional gains over a longer timespan. Peloton jumped as much as 15% on Tuesday.
“Earnings season was good and the market backdrop continues to be positive,” Darsney added. “The fact that it’s a very constructive tape, which it has been for a long time now, continues to play into an open capital markets window.”
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