Shortened Week After New Year's Day Sees One New IPO Filing

Jan. 7.13 | About: New Source (NSLPQ)

With New Year's Day breaking up the week, only one new company, New Source Energy Partners (NSLP), filed for an IPO to start off the new year. This tepid start to 2013 is in stark contrast to the starts of 2012 and 2011, which saw seven and five deals, respectively, file in the first week of January. The reduced visibility resulting from the JOBS Act has likely contributed to drop in filing activity. Despite the slow start, there is still plenty of time for January to get on track. While January is typically one of the slower months of the year for new filers, it has averaged 15 new filings since 2010.

Confidential filer New Source Energy Partners, an LP sponsored by New Source Energy (NSE), which owns oil and gas assets, filed for an IPO that could raise over $100 million. The sponsor, New Source Energy, originally filed for an IPO in the summer of 2011 and set terms in April 2012 for a deal that would have valued the company at $363 million. It eventually withdrew its plans for an IPO in May after failing to drum up sufficient investor demand at the proposed valuation. New Source Energy Partners recorded $42 million in sales and $19.5 million in EBITDA for the 12 months ended June 30, 2012.

Recent filings indicate that IPO activity should pick up later this month. The end of 2012 saw strong performance among newly priced IPOs, with the last 10 IPOs achieving an average return of 33% and aftermarket return of 20%. Among the 11 new filers in December, five had previously filed confidentially and could launch their roadshows in the coming weeks. In addition to New Source Energy Partners, this group of confidential filers includes Aviv REIT (NYSE:AVIV), Five Oaks Investment (FOIC), Health Insurance Innovations (NASDAQ:HIIQ), and TRI Pointe Homes (NYSE:TPH).