A great number of companies plan IPOs this week

A great number of companies plan IPOs this week
A rush of companies are shooting to go public this week, putting it on pace to be the busiest week for IPOs since 2007,UGG Classic Metallic Boots ending another disappointing year for IPOs on a high note
If all the companies scheduled to go public this week get their deals done, there will be 12 initial public offerings, Renaissance Capital says. That’s the most IPOs in a week since November 2007. Even if just nine deals are priced this week, it will be the busiest week for IPOs all year.
The week is expected to bring the IPOs of highly anticipated online gaming company, Zynga, as well as well-known apparel designer Michael Kors. Jive Software, a maker of social-networking software for companies, kicked things off Tuesday; its shares rose 25% to $15.05.UGG Classic Cardy Boots

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“There are just so many companies who need to go public,” says Kathy Smith of Renaissance Capital. “They’ve been bottled up.”
The avalanche of IPOs coming out is encouraging since it shows investors still have:
•Appetite for IPOs despite a choppy market. Investors all but stopped buying IPOs in August when the stock market stumbled amid worries about government debt. But with the Standard & Poor’s 500 up 8% since late September, despite a 0.9% decline Tuesday, investors are willing to take a look at IPOs. “The IPO market can turn on a dime,” says John Fitzgibbon of IPOscoop.com. “It doesn’t take much.”
•Speculative hopes. Big first-day gains, largely by Internet companies such as radio station Pandora and discounter Groupon, have kept the interest of speculators, says Francis Gaskins of IPOdesktop.com. That enthusiasm hasn’t waned despite the fact that Pandora and Groupon are now trading 39% and 11% below their first-day closing prices.
•Lingering patience. Investors seem willing to buy IPOs even though they haven’t fared well with them this year. The FTSE
Investors shouldn’t assume a strong week means all is well. This year is proving to be below-average. Just $35 billion was raised through 115 IPOs this year, Renaissance says, down from $39 billion from 154 IPOs in 2010. In a typical year, closer to $50 billion is raised from 250 deals, Renaissance says.
The outlook for IPOs hinges on the direction of stocks, says Jay Ritter, professor of finance at the University of Florida. “If there are declines and if the problems in Europe spread, then the volume of deals will be even lower,” he says.