00:00The IPO market with public markets are volatile, I think, is an understatement.
00:05But we got this IPO coming in the way this HVAC company, Madison Air.
00:10Is this kind of like breaking the dam of this IPO freeze it seems like we had?
00:15Bankers really hope so, and they could raise up to $2.3 billion.
00:17So that would be the biggest deal in the U.S. so far this year.
00:21The big question does come back to some of the fundamentals.
00:23HVAC is top of mind, but how do you value that against some of the publicly traded comps?
00:27Do investors really still want a 20%, 25% discount to peers?
00:31And how does it get across the finish line?
00:33We also had ARC6 launch this morning, so we are going to have two deals pricing next week.
00:38Given the volatility, bankers normally will say they know the answers to the test before they take it.
00:42So the expectation would be that they'd get these off the ground.
00:45What is the bar for pulling these if there is more market volatility next week?
00:49Or have they prepped everything and they're going ahead regardless if we get a day like today where stocks are
00:53up 3%
00:54or maybe the opposite where they're down 3%?
00:55It's hard to forecast.
00:57When we saw the pair of deals pulled earlier this year, liftoff, their comps were down about 45% in
01:02a few days leading up to pricing.
01:04And that's pretty much impossible to price a deal.
01:06And then on the flip side, you had Clear Street, which there was a lot of pushback to the valuation
01:10even before they formally launched that.
01:12So I think you would need a lot of volatility to really get these deals held up further.
01:17But the big question still will be what actually happens with the volatility.
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