Last week’s 11 pricings brought the year’s total to 221, the highest count since 2000, and large deals from Hilton Worldwide (NYSE:HLT) and ARAMARK (NYSE:ARMK) lifted the year’s total proceeds above $50 billion, also a first since 2000. With 69 IPOs completed since October (and a possible 70th coming from AMC Entertainment (NYSE:AMC) this week), the 4Q13 became the most active quarter for IPOs since the 4Q07 (70 deals). The week’s IPOs raised $5 billion combined and posted an average return of 24%, and three companies, Autohome (NYSE:ATHM), Kindred Bioscience (NASDAQ:KIN) and Nimble Storage (NYSE:NMBL), had first-day gains of greater than 60%. No new IPOs were launched, but three companies, including the fast-growing caregiver marketplace Care.com (CARE.RC), made initial filings.
Hilton completes second-largest IPO of 2013
Hilton Worldwide, the world’s largest hotel chain, and ARAMARK, a provider of food and facilities management, were acquired in the pre-recession LBO boom, and both traded up more than 10% after large IPOs. Hilton’s $2.4 billion raised was the second-largest sum of the year and represented the second successful hotel IPO of the quarter for Blackstone (NYSE:BX), which took Extended Stay America (NYSE:STAY) public in November. ARAMARK, backed by Warburg Pincus and Goldman Sachs, priced its $725 million deal at the low of the range and gained 19%.
Autohome, Nimble and Kindred gain 60%+
Two tech companies, Autohome and Nimble, and a pet therapeutics developer, Kindred Bioscience, were the top performers of the week. Autohome operates an auto information, reviews and listings website in China that is viewed by 6 million people daily. Sales grew 63% year-to-date, and the site has been profitable for the past three years. Nimble Storage, which sells hybrid flash/disk storage arrays to enterprises, has grown even faster, with 130% sales growth in the third quarter. Despite the poor performance of flash storage peer Violin Memory (NYSE:VMEM) (down 70% since its September 2013 IPO), Nimble posted a 62% first-day pop on Friday. Kindred Bioscience’s trading (up 74% for the week) mirrored that of its closest peer, Aratana Therapeutics (NASDAQ:PETX), which is up 207% since its June 2013 IPO (the third-best IPO return of the year).
|IPO pricings (week of December 9, 2013)|
|Company (Ticker)||Business||Deal Size ($mm)||IPO Price vs. Midpoint||Return as of 12/13|
|Kindred Biosciences (KIN)||Pet therapeutics||$53||0%||74%|
|Autohome (ATHM)||Online Chinese auto info||$133||31%||68%|
|Nimble Storage (NMBL)||Flash/disk storage arrays||$168||24%||62%|
|Valero Energy Partners (NYSE:VLP)||Pipeline and logistics assets||$345||15%||23%|
|ARAMARK Holdings (ARMK)||Food and facilities management||$725||-7%||19%|
|Fidelity & Guaranty Life (NYSE:FGL)||Life insurance||$166||-6%||11%|
|Hilton Worldwide (HLT)||Hotel chain||$2,353||3%||11%|
|TetraLogic Pharmaceuticals (NASDAQ:TLOG)||Cancer therapeutics||$50||-50%||0%|
|CatchMark Timber Trust (NYSE:CTT)||Timberlands REIT||$142||-5%||0%|
|Scorpio Bulkers (NYSE:SALT)||Drybulk shipping||$305||0%||0%|
|Cheniere Energy Partners LP Holdings (NYSEMKT:CQH)||LP interest in Cheniere Partners||$720||0%||-4%|
Growing at 81%, Care.com files for an $80 million IPO
Three companies made initial IPO filings last week. Care.com, an online marketplace for finding and managing family care, filed for an $80 million IPO. Its site helps 5.1 million family users and 4.4 million caregiver members in 16 countries arrange child care, senior care, special needs care, pet care, tutoring and housekeeping services. Sales grew 81% to $59 million for the nine months ended September 28, 2013.
Malibu Boats (NASDAQ:MBUU), the number one performance sport boats company in the US, filed for a $115 million IPO. Malibu sells boats mostly in the $40,000-$75,000 range through independent dealers. Net sales increased 31% to $43 million in the third quarter. Celsus Therapeutics (CLTX), which has a low-volume listing on the OTC market, filed for a $12 million offering. It has completed Phase 2a trials for drugs treating hay fever and eczema.
|New IPO filers (week of December 9, 2013)|
|Company (Ticker)||Business||Deal Size ($mm)||LTM Sales ($mm)|
|Malibu Boats (MBUU)||Performance sport boats||$115||$177|
|Care.com (CARE.RC)||Family care online marketplace||$80||$75|
|Celsus Therapeutics (CLTX)||Anti-inflammatory drugs||$12||$0|
IPO market snapshot
The 221 IPOs in 2013 have raised $54.6 billion and produced an average return of 32%. The Renaissance IPO ETF, which trades under the symbol (NYSEARCA:IPO), tracks an index that is up 57% this year. There have been 89 IPOs in the past 90 days, with total proceeds of $26.0 billion and an average return of 35%. The active IPO pipeline includes 85 companies looking to raise a total of $24.5 billion.