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Based in Fort Worth, TX, Athlon Energy (NYSE:ATHL) scheduled a $300 IPO with a market capitalization of $1.6 billion at a price point mid-range of $19, for Friday, August 2, 2013.

Six other IPOs were scheduled for the week of July 29. The full IPO calendar can be found at IPOpremium.

  • S-1 filed July 22, 2013
  • Manager, Joint Managers: Citigroup; Goldman; BofA Merrill; UBS; Wells Fargo
  • Co-Managers: Barclays; Credit Suisse; RBC; Scotiabank - Howard Weil; Tudor, Pickering; Apollo Global Securities; CIBC; Credit Agricole CIB; FBR; Lebenthal Capital; Mitsubishi UFJ Securities; Simmons; Stephens

BUSINESS

ATHL is an exploration and production company, with oil currently contributing over 80% of revenue.

ROLL-UP

A significant portion of ATHL's historical growth has been achieved through acquisitions. Since ATHL's inception in August 2010, ATHL has completed two significant acquisitions and seven bolt-on acquisitions.

VALUATION

Valuation Ratios

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

annualizing Q1 '13

Cap (MM)

Sls

Erngs

BkVlue

TanBV

in IPO

Athlon Energy

$1,596

7.3

124.7

2.6

2.5

19%

Jones Energy (NYSE:JONE)

$555

2.5

462.5

0.9

1.2

34%

JONE IPO'd July 25, at $15, which was 17% below price range mid-point, and traded recently below $14. ATHL wants to IPO at a significant premium to JONE, which might make IPO buyers nervous. ATHL is mostly in oil.

CONCLUSION

However, recent oil prices are trending up, so the rating on ATHL neutral to positive at the price range mid-point.

To put the above conclusions and observations in context, the following is reorganized, edited, and summarized from the full S-1.

PRINCIPAL STOCKHOLDERS

Principal stockholders are the Apollo Funds, which will own 68% post-IPO.

Use of proceeds
ATHL expects to net $279 million from its IPO. ATHL will purchase units from the operating company, which will use the money to repay debt. ATHL is a shell company expecting to receive dividends from the operating company.

Disclaimer: This ATHL IPO report is based on a reading and analysis of ATHL's S-1 filing, which can be found here, and a separate, independent analysis by IPOdesktop.com. There are no unattributed direct quotes in this article.

Source: IPO Preview: Athlon Energy