January represented a solid start for the 2013 IPO market with 10 deals priced. The table below summarizes the activity:
Within this diverse group, some themes are apparent. Investors are liking more stable companies like Norwegian Cruise Lines (NCLH), Bright Horizions (BFAM) and Zoetis (ZTS), companies positioned to benefit from a stronger U.S. real estate market like TRI Pointe Homes (TPH) and Gladstone Land (LAND). as well as high yield equities CVR Refining (CVRR), SunCoke Energy (SXCP), and USA Compression Partners (USAC).
Equally impressive is the active pipeline of transactions going into February. There are 11 deals in active marketing with more filing and starting their roadshows every week. The listing of active deals below shows some of the same trends toward well-established companies, the housing market recovery and yield:
One company on the list, ExOne (XONE), is the first "hot" IT deal on the calendar this year. Investors have been flocking to 3D printing with stocks like Stratasys (SSYS) and 3D Systems (DDD). They were denied an IPO to play when Objet was acquired by Stratasys last year before it had a chance to start the roadshow. ExOne provides another opportunity, albeit with a slightly motley crew of bankers. The company was funded in large part by the management team, so it's not a traditional venture-backed company.
The JOBS act impacts are more visible in the IPO market today, as many companies are keeping their filings private. This makes advanced SEC filings a less reliable indicator of what the pipeline holds. That said, we still have over 100 company IPO filings to work through.
Companies like XOOM (on the road now) are declaring themselves "emerging growth companies" under Federal securities law to reduce their public company reporting requirements.
All in all, a solid start to the year after a bleak December as the market faced the fiscal cliff and wondered what would happen in January. As long as U.S. and global growth remains steady, we should be able to maintain a healthy level of IPO activity this year. At 10 pricings per month, we are running at about 50% of normal capacity.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.