Peabody Energy Leads Revived IPO Market

The market for new stock offerings, underpinned by the broader market rally and a succession of strong Wall Street debuts, is heading into summer on a wave of renewed investor appetite.

Despite the slowest first quarter in more than a decade, the outlook for initial public offerings is improving, with some multibillion-dollar deals on the horizon.

Peabody Energy Corp., one of the world’s largest private-sector coal companies, could raise up to $360 million, making it this week’s major deal. The IPO’s terms were lowered in early May, but Peabody is expected to do well after a series of strong energy offerings.

The shares of the St. Louis-based firm could rise 10% to 20% when they begin trading “because if demand starts to boost, [the underwriters] will definitely boost the price or number of shares,” Irv DeGraw, analyst with financial research firm WFN USA, said.

Smith & Wollensky Restaurant Group Inc., the upscale restaurant owner and operator, also is on the calendar to go public. The New York-based company narrowed the price range on its IPO in early May and could raise up to $45 million.