This Week's IPOs (HOMB, HXN, TWLL)

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 |  Includes: DOW, HOMB, HUN, HXN, PEG, TWLL, TXN
by: Evelyn Rubin

There are three IPOs on deck this week: Techwell (TWLL), Hexion Specialty Chemicals (HXN) and Home Bancshares (HOMB). All excerpts are from the companies' S-1 Filings.

TECHWELL (NASDAQ: TWLL)

Previously on Seeking Alpha: See a summary of the company's initial S-1 filing here.

Business (from Prospectus):

We are a fabless semiconductor company that designs, markets and sells mixed signal integrated circuits for multiple video applications in the consumer, security surveillance and automotive markets. We target video applications based on digital technologies that receive and process analog video signals. These video applications include advanced TVs, multifunction LCD monitors, DVD recorders, camcorders, security surveillance systems and in-car displays. These applications receive analog video signals commonly generated by over-the-air TV broadcasts, by consumer electronics devices such as set-top boxes, DVD players, VCRs and camcorders and by surveillance cameras.

Underwriters: Lehman Brothers, Cowen & Co.

Offering: 2.54 million shares offered by the company, and 2.96 million offered by selling shareholders (including CEO and CTO, each of which is offering 5% of his shares). Offer range is $11-13; at mid range, the company expects to raise $25.3 million net ($34.5 million after underwriters' option). The total raise, including insiders' shares, will be $66 million at mid-range. The raise is earmarked for general corporate/working capital.

Financial Highlights:

We began shipping our semiconductors in 1999, and to date, we have sold over 15 million semiconductors. Our revenues increased from $2.2 million in 2001 to $17.3 million in 2004 and reached $36.1 million for the year ended December 31, 2005. Although we incurred net losses through 2004, for the year ended December 31, 2005 our net income was $4.5 million.

Select Competitors: Philips Electronics (NYSE:PEG), Texas Instruments (NASDAQ:TXN), Micronas (Public in Switzerland, MASN).

HEXION SPECIALTY CHEMICALS (NYSE: HXN)

Business (from Prospectus):

We are the world’s largest producer of thermosetting resins, or thermosets. Thermosets are a critical ingredient for virtually all paints, coatings, glues and other adhesives produced for consumer or industrial uses. We are focused on providing a broad array of thermosets and associated technologies, with leading market positions in all key markets served.

Underwriters: Credit Suisse, Goldman Sachs, JP Morgan, Lehman Brothers

Offering: Range of $25-28 (lower end recently reduced from $26). 19 million shares being offered, 80% of which are from the selling shareholders. The company's net proceeds from the sale, at a mid-range price of $26.50, will be $87 million. Together with existing cash, this will go towards debt repayment. Selling shareholders will receive $383 million ($455 million if underwriter options are exercised). Post offering, Apollo will continue to own 70% of the company.

Financial Highlights:

In 2005 and for the three months ended March 31, 2006, on a pro forma basis, we generated pro forma net sales of $4.7 billion and $1.2 billion, respectively. In 2005, 58% of our pro forma net sales were derived from sales to North America, 32% to Western Europe and 10% to Asia-Pacific, Latin America, Eastern Europe and other emerging markets. As of March 31, 2006, after giving pro forma effect to the Hexion Refinancings and the offering, we would have had $2.7 billion principal amount of outstanding indebtedness and $0.1 billion of cash and equivalents.

Select Competitors: Dynea International (Finland), Dow Chemical (NYSE:DOW), Huntsman Corporation (NYSE:HUN).

HOME BANCSHARES (NASDAQ: HOMB)

Business (From Prospectus):

We are a financial holding company headquartered in Conway, Arkansas. Our five wholly owned community bank subsidiaries provide a broad range of commercial and retail banking and related financial services to businesses, real estate developers and investors, individuals, and municipalities. Three of our bank subsidiaries are located in the central Arkansas market area, a fourth serves Stone County in north central Arkansas, and a fifth serves the Florida Keys and southwestern Florida.

Underwriters: Stephens, Piper Jaffray

Offering: 2.5 million shares offered; range is $16-18. At mid-range, the total raise will be $42.5 million. Net proceeds are earmarked to general corporate purposes and possible acquisitions.

Financial Highlights:

From December 31, 2001, to March 31, 2006, we have: increased our total assets from $322.0 million to $2.0 billion; increased our loans receivable from $235.7 million to $1.2 billion; increased our total deposits from $237.3 million to $1.5 billion; and expanded our branch network from eight to 48.