When words such as “cloud computing” and “China” wrap their fingers around an IPO these days, you can anticipate some aftermarket fireworks. 21Vianet Group (VNET) – a Chinese “cloud computing” company – heads up this week’s IPO calendar. The Street is calling it “the pick of the week.”
21Vianet believes it is the largest carrier-neutral Internet data center services provider (“cloud computing”) in China. The company operates 47 data centers in 33 cities throughout China, including all of China’s major Internet hubs, with over 5,700 cabinets under management housing over 39,000 servers. 21Vianet planned to price 11.5 million American Depositary Shares (ADS) at $10 to $12 each on Wednesday evening to trade on Thursday.
Consider this old Wall Street cliché: “You are only as good as your last trade.” Let’s look at the most recent IPOs from the “cloud computing” and Chinese arenas.
Cornerstone OnDemand (CSOD), based in Monica, California, is a software provider of learning and talent management solutions (“cloud computing” for human resources types). On March 16, Cornerstone priced 10.5 million shares at $13 each. The IPO closed on Friday, April 15, at $17.80 -- UP 36.9 percent from its initial public offering price.
Qihoo 360 Technology Co. Ltd. (QIHU), based in Beijing, is China’s third-largest Internet company. On March 29, Qihoo priced 12.1 million ADS at $14.50 each. The IPO closed on Friday at $29.42 -- UP 102.9 percent from its initial public offering price.
Worth noting: The Chinese IPO bandwagon keeps rolling.
Late Friday afternoon, on April 15th, the Beijing based Renren (RENN) filed for an IPO to price 53.1 million ADS at $9 to $11 each to raise $531 million. And what is Renren? It’s been called China’s Facebook.
Now back to the present and this week’s IPO calendar. Bankers plan to offer a total of five deals, with 21Vianet on the marquee. They expect to raise over $900 million. But what’s a calendar without a dark horse? The Street is betting on the following:
Responsys (MKTG), based in Los Angeles, provides hosted marketing software and services for direct mail, e-mail, mobile devices, social media, the Web, and other marketing channels to reach their customer base. Their financials make for some interesting reading.
For the year ended Dec. 31, 2010, Responsys reported net income of $8.6 million, UP 48.3 percent from $5.8 million for the same period a year ago
For the year ended Dec. 31, 2010, Responsys reported revenues of $94.1 million, UP 41.3 percent from $66.6 million for the same period a year ago.
Responsys plans to offer 6.62 million shares at $8.50 to $10 each. The company will offer 5 million shares and selling shareholders will offer 1.62 million shares. The IPO was expected to be priced on Wednesday evening, April 20th, and trade on Thursday – Wall Street’s last work day before taking a break for Good Friday.
Rounding out the Calendar
Now for the rest of this week’s IPO calendar:
Air Lease (AL), based in Los Angeles, purchases commercial aircraft and leases them to airlines. Founded in 2010, the company reported a loss of $52 million on revenues of $57 million for the year ended Dec, 31, 2010. Air Lease plans to offer 25 million shares at $25 to $28 each. The IPO was priced on Monday evening and traded on Tuesday.
Sagent Pharmaceuticals (SGNT), based in Schaumburg, Illinois, develops a range of generic injectable products used by hospitals, dialysis centers, and other health care organizations. Its products include anti-infection drugs, chemotherapy drugs, and critical care treatments used to stabilize cardiac conditions like blood clotting and arrhythmia. Founded in 2006, the company reported a net loss of $24.5 million on revenues of $74.1 million for the year ended Dec, 31, 2010. Sagent Pharmaceuticals plans to offer 5 million shares at $14 to $16 each. The IPO was priced on Tuesday evening and traded on Wednesday.
Tesoro Logistics LP (TLLP), based in San Antonio, Texas, is a limited partnership recently formed by Tesoro (TSO) to own and operate crude oil gathering, transportation, and storage facilities located in California, Utah, Washington, Alaska, and North Dakota. Founded in 2010, the company plans a minimum quarterly distribution of $0.3375 per unit, or $1.35 per unit on an annualized basis, to yield 6.75 percent at the mid-point of its proposed price range. Tesoro Logistics plans to offer 12.5 million common units at $19 to $21 each. The IPO was priced on Tuesday evening and traded on Wednesday.
This week starts with Passover and ends with Good Friday, but there will still be enough people around to have fun romping through the IPO calendar.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.