Two IPOs on Tap

We are going into the dog-days of August, which means expect few IPOs. In fact, this week there are only two offerings on tap (and both are actually based in Asia):

CDC Software: The company develops enterprise software for managing customer relationships, supply chains and manufacturing operations. While the software is fairly sticky – involving lucrative ongoing maintenance fees – the fact remains that the lagging global economy is taking a toll. Although, CDC does have the advantage of cost-effective development (the R&D centers are located in China and India).

The underwriters include: Lazard Capital Markets (NYSE: LAZ) and JMP Securities. The proposed ticker is: CDCS.

Avago Technologies: A spinoff of HP (NYSE: HPQ), Avago has an extensive portfolio of semiconductor products, which span industries like wireless communications, wired infrastructure, consumer and computing peripherals. The company has been in business over 40 years and has amassed more than 5,000 patents.

Private equity firm KKR purchased Avago several years ago. Since then, there has been a big restructuring, which has greatly helped to reduce costs. Assuming there is a global rebound in the economy, Avago should be a beneficiary.

The underwriters include: Deutsche Bank Securities, Barclays Capital, Morgan Stanley (NYSE: MS) and Citi (NYSE: C). The proposed ticker is: AVGO.