As far as Wall Street investment bankers are concerned, the July 4 break was just what was needed. Recent IPO traffic staggered to the intermission like a punch-drunk prize fighter hanging on to be saved by the bell.

Of the 11 expected offerings in the last week, six were priced, two were pushed off into the future, two were postponed, and one is now listed as “day to day.”

There were two high-profile deals. One was a hit, exceeding expectations. The other one left bankers and investors alike with a huge hangover.

J. Crew Group, the New York City-based preppy retailer, more than lived up to its pre-offering hype. The company priced 18.8 million shares at $20 each and closed its opening day at $25.55 per share, up 27.5 percent from the offering price.

Aventine Renewable Energy Holdings, the Pekin, Illinois-based ethanol producer and distributor, was a colossal flop. Amid a lot of hype, the company priced 9.1 million shares at $43 each. That was well above its original filing range of 7.75 million shares at $37 to $41 each. Normally to increase a deal is a sign of a good aftermarket pop. It didn’t happen in this case. The IPO was slammed on the opening. It started trading at $41.75 per share and closed its opening day at $38.37, down 10.8 percent from its IPO price.

People were pointing to the underlying stock market as the problem. On April 19, the Nasdaq Composite Index, the barometer of the IPO market, closed at its 2006 high at 2,370.88 and then fell to 2,072.47, down 12.6 percent by June 13. Even though it had shown some recovery by June 29 at 2,174.38, the Nasdaq was still struggling. And so has the IPO market.

The Independence Day breakup of trading may be just what’s needed. The securities markets will open on Monday, but close on Tuesday for the holiday. Trading will resume on Wednesday for the rest of the week.

Nevertheless, the traditional summer pause normally puts the brakes on the IPO traffic. Here is what happened last year and the year before.

On June 30, 2005, bankers priced Courtside Acquisition, a New York City-based special purpose acquisition company (SPAC) at $6 per unit. On June 29, 2006, the unit closed at $6.30, up 5 percent from its initial offering price.

On July 7, 2005, bankers priced Medical Properties Trust, a Birmingham, Alabama-based real estate investment trust, at $10.50 per share. On June 29, 2006, it closed at $11.20, up 6.7 percent from its initial offering price.

Bankers were to price a total of 18 IPOs in July 2005, excluding six unit offerings, such as the SPACs, according to available reports.

July 2004

On June 30, 2004, bankers priced WellCare Group, a Tampa, Florida-based provider of managed care services to government-sponsored healthcare programs, such as Medicaid, Medicare, and supplemental Medicaid programs, and the State Children’s Health Insurance programs, at $17 per share. On June 29, 2006, it closed at $46.29 per share, up 172.3 percent from its initial offering price.

On July 7, bankers priced Holly Energy, a Dallas-based pipeline partnership serving Holly Energy’s Southwestern U.S. refinery output, at $22.50 per share. On June 29 this year, it closed at $41 per share, up 82.2 percent from its initial offering price.

Bankers were to price a total of 28 IPOs in July 2004, excluding one unit offering.

This year, bankers have a couple of deals on tap, and then the calendar starts building. For the week of July 10, bankers have four deals on the IPO launching pad.

Inside this Week’s IPO Calendar

The deals on this week’s IPO calendar are carryovers from the past. And the probability of either getting priced soon is problematical. Here’s why.

One is listed as “day to day,” which isn’t a strong indication that the offering will get priced. The other is a SPAC, or special purpose acquisition company, and it’s been kicking around for weeks, waiting for approval from the U.S. Securities and Exchange Commission.

Gordon Biersch Brewery Restaurant Group is a Chattanooga, Tennessee-based operator of upscale brewery restaurants. Gordon Biersch operates 26 company restaurants in 13 states and the District of Columbia. Gordon Biersch operates 17 restaurants under its own name and nine regionally branded restaurants, such as BigRiver, A1A Aleworks, SevenBridges, and Ragtime Tavern.

Gordon Biersch Brewery Restaurant Group plans to price 4.45 million shares at $10 to $12 each to raise $49 million. The price range has been reduced from $13 to $11 per share. The company will offer 4.31 million shares and selling shareholders will offer 142,534 shares.The IPO is now “day to day.”

For the quarter ending March 31, Gordon Biersch Brewery Restaurant Group reported net income of $136,000 before accrued dividends and accretion on convertible preferred stock on revenues of $27 million, compared with net income of $226,000 before accrued dividends and accretion on convertible preferred stock on revenues of $23.8 million for the same period a year ago. As of March 26, Gordon Biersch Brewery Restaurant Group reported an accumulated deficit of $23.2 million. Formed in 1987, Gordon Biersch Brewery Restaurant Group has about 2,283 employees.

Underwriters: Thomas Weisel Partners and BB&T Capital Markets are the joint-lead managers. Acting as co-managers are Morgan Keegan. Selected Principal Shareholders: HancockPark Capital II, L.P. and RSTW Partners III. 52-Week Percentage Change: Dow Jones U.S. Restaurants & Bars Index, up 15 percent; Nasdaq Composite Index, up 5.71 percent.

Millennium India Acquisition, a New York City-based “blank check” company, plans to offer 8.5 million units at $8 each. Each unit consists of one common share and one warrant. The IPO is to start trading on Thursday.

Underwriters: Ladenburg Thalmann is the lead manager. Acting as co-managers are Ferris Baker Watts and Maxim Group. The company’s purpose is to buy startup companies in India.

Contact the writer:Editorial@RedHerring.com