When the stock market surged to its sharpest single-week gain in well over two-and-a-half years, there was not an IPO in sight. That picture is about to change. Bankers are looking to price 14 deals over the next two weeks and expect to raise $3.5 billion in proceeds.
That’s right – 14 deals to raise $3.5 billion. Flip back to a week ago on Friday, Nov. 25, when the IPO calendar listed just two deals that were expected to raise $101 million.
The news out of Europe and then out of Washington were the sparks behind the stock market’s explosive gain. The three major U.S. stock indexes each gained more than7 percent. That blew the hinges off the IPO pipeline.
In addition to the quick build-up of the IPO traffic and volume, the exciting news was the greatly anticipated Zynga (NASDAQ:ZNGA) IPO filing its pricing terms. The deal leaped onto the calendar. It is expected to start trading on Friday, Dec. 16.
The social game developer plans to price its IPO of 100 million shares at $8.50 to $10 each to raise $925 million. But more on this next week.
There was another social networking provider to hit the IPO calendar last week as well. It was Jive Software (NASDAQ:JIVE). The company announced plans to price 11.7 million shares at $8 to $10 each. It is expected to start trading Wednesday, Dec. 14. But more on this next week.
Back to the Present
This week we are looking at five deals and the IPO experts are not expecting an opening-day moonshots from the group.
Two are limited partnerships, one a ski resort operator and two others that have been on the calendar before.
Memorial Production Partners LP (NASDAQ:MEMP) is a Houston-based limited partnership that was formed to own and acquire oil and natural gas properties in North America. The company plans to make quarterly cash distributions of 47.5 cents per common unit, or $1.90 per unit on an annualized basis, to yield 9.5 percent.
Bankers plan to price 10 million common units at $19 to $21 each on Thursday evening, Dec. 8, to trade Friday on the NASDAQ Global Market under the proposed symbol “MEMP.” Joint-lead managers are Citigroup, Raymond James and Wells Fargo Securities.
Rose Rock Midstream, L.P. (NYSE:RRMS) is a Tulsa-based limited partnership that was formed to own, operate, develop and acquire a diversified portfolio of midstream energy assets of crude oil gathering, transportation, storage and marketing in Colorado, Kansas, Montana, North Dakota, Oklahoma and Texas. The company plans to make quarterly cash distributions of 36.25 cents per common unit, or $1.45 per unit on an annualized basis, to yield 7.25 percent.
Bankers plan to price 7 million common units at $19 to $21 each on Thursday evening, Dec. 8, to trade Friday on the New York Stock Exchange under the proposed symbol “RRMS.” Joint-lead managers are Barclays Capital, Citigroup and Deutsche Bank Securities.
Peak Resorts (PEAK) is a Wildwood, Missouri-based operator of 12 ski resorts located in Indiana, Missouri, New Hampshire, Ohio, Pennsylvania, and Vermont.
Bankers plan to price 5 million common units at $16 to $18 each on Wednesday evening, Dec. 7, to trade Thursday on the NASDAQ Global Market under the proposed symbol “PEAK.” The lead manager is Raymond James.
The other deals on the calendar are HomeStreet (NASDAQ:HMST), a Seattle-based diversified financial service company, and WhiteSmoke (WHSM), an Israeli-based software provider offering tools to improve grammar, spelling, structure and style of English texts for both native and non-native English speakers.
Both deals are repeats on the IPO calendar.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.