IPO activity for 2010 has already begun, with two Chinese companies scheduled on the IPO calendar during the week of Jan. 18. China Hydroelectric (NYSE:CHC), which consolidates, operates and develops hydropower plants, plans to raise $50 million by offering 3.1 ADSs at a price range of $15-$17. At the mid-point of the proposed range, the company will command a market value of $721 million. China Hydroelectric, which was founded in 2006 and booked $35 million in sales over the last 12 months, plans to list on the NYSE under the symbol CHC. Broadband Capital is the lead underwriter on the deal.
In a smaller deal, Andatee China Marine Fuel Services (NASDAQ:AMCF), which produces and sells blended marine fuel oil for cargo and fishing vessels, plans to raise $18 million by offering 2.5 million ADSs at a price range of $6-$8. At the mid-point of the proposed range, Andatee China will command a market value of $60 million. The company, which was founded in 2001 and booked $87 million in sales over the last 12 months, plans to list on the NASDAQ under the symbol AMCF. Rodman & Renshaw and Newbridge Securities are the lead underwriters on the deal, which is expected to price on Thursday, Jan. 21.
In addition, there have already been two new IPO filings this week. IFM Investments Limited, which provides real estate services and exclusively franchises the CENTURY 21 brand in China, filed on Tuesday with the SEC to raise up to $184 million in an initial public offering. The Beijing-based company offers three business lines: company-owned brokerage services, mortgage management services and franchise services.
DynaVox, which offers proprietary software to assist people with speech, language and learning disabilities, also filed on Tuesday with the SEC to raise up to $125 million in an initial public offering.
A terms announcement came from Symetra Financial, which provides group health, retirement, life and employee benefits insurance. The Bellevue, WA-based company plans to raise $351 million by offering 27 million shares at a price range of $12-$14. At the mid-point of the proposed range, Symetra will command a market value of $1.4 billion. The company, which was founded in 1957 and is owned by Berkshire Hathaway and White Mountains Insurance Group, previously filed to go public in June of 2007 but withdrew in October of 2008 due to poor market conditions. BofA Merrill Lynch (NYSE:BAC), J.P. Morgan (NYSE:JPM), Goldman Sachs (NYSE:GS) and Barclays (NYSE:BCS) are the joint bookrunners on the deal, for which timing has not been disclosed.
In our 2009 Global Annual IPO Review, Renaissance Capital commented on the 2010 IPO outlook:
While 2009 was certainly not a rebound to normal IPO levels, the common theme we saw amongst the stronger deals is that investors are looking for opportunities to invest in growing companies. Our analysis of the US IPO pipeline as well as the broader shadow backlog suggests that there is a significant supply of growth companies waiting to tap the markets, and the strong returns of 2009’s quality growth IPOs demonstrates that there is adequate demand to support it. Even if broader equity market returns are mediocre, 2010 could nevertheless mark the beginning of a strong IPO cycle.
Disclosure: No positions