The US IPO market continued to show positive signs this week, as the number of upcoming pricings increased to 11. Six companies, representing an even mix of the basic resources, technology and oil & gas industries, moved ahead with their deals this week. All plan to price the week of January 30th (along with biopharmaceutical companies Merrimack (NASDAQ:MACK) and Cempra (NASDAQ:CEMP)), except for Cementos Pacasmayo (NYSE:CPAC), which plans to price the following week. Renewable Energy Group (NASDAQ:REGI), the largest producer of biodiesel in the US, priced below its proposed range on Wednesday and is trading down 3.66%, but alternative energy IPOs tend to have limited appeal. The broader picture was very encouraging, as the FTSE Renaissance US IPO Index continued to outperform the S&P 500 by a large margin (9.0% vs. 4.6% YTD). The gain shows that money is flowing into newly public companies and suggests a positive outlook for the 10 deals pricing in the next two weeks.
A leader in electronic healthcare records, Greenway Medical Technologies (NYSE:GWAY), announced that it would offer 6.7 million shares at a price range of $11-13 for an estimated $80 million. Sales grew by 55% to $26 million in the most recent quarter. Amsterdam-based AVG Technologies (NYSE:AVG), a provider of security software, will seek to raise $136 million by offering 8 million shares at a price range of $16-18. It offers a highly popular free antivirus program that competes directly with Avast Software (Private:AVST), which submitted its initial filing in late December. Sales for the nine months ended September 30, 2011 increased 24% to $198 million. For the year, the number of active users increased 8% to 106 million, while the revenue per active user increased 19% to 1.94. Cementos Pacasmayo (CPAC), a cement producer based in Peru, announced an offering of $245 million, with 20 million ADSs at a price range of $11.50-13. Founded in 1949, it booked $349 million in LTM sales and would command a market value of $1.4 billion at the midpoint of the proposed price range. U.S. Silica (NYSE:SLCA), the second largest producer of domestic silica, launched a $200 million IPO, with 11.8 million shares pricing between $16 and $18. LTM sales were $271. Finally, two oil and gas E&Ps set terms, continuing a stretch of strong activity in the industry (seven pricings and nine filings since December 8). Dynamic Offshore Resources (DOR), which operates near the Gulf of Mexico, hopes to raise $300 million by offering 16.7 million shares at a price range of $17-19. Its $448 million in LTM sales are up from $359 million in 2010 and $181 million in 2009. Matador Resources Company (NYSE:MTDR), which has wells in Texas, Louisiana and other western states, announced on Thursday that it would offer 13.3 million shares at a price range of $14-16. Pricing at the midpoint would provide $200 million in proceeds and a market value of $832 million. LTM sales were $66 million.
Filing activity slowed this week, but the 14 filings this month leave January only three short of matching a 10-year high. The two additions were GasLog (NYSE:GLOG), a natural gas transporter, and China Auto Rental (CARH), the largest car rental company in China. GasLog registered on Tuesday for a $350 million IPO. The Monaco-based company operates 14 ships, which are specialized for transporting liquefied natural gas, and booked $65 million in sales for the twelve months ended June 30, 2011. China Auto Rental filed for a $300 million IPO on Wednesday. Based in Beijing, the company's fleet of approximately 26,000 vehicles is about four times the size of its largest competitor. Given urbanization and economic trends, the Chinese car rental market is expected to continue growing rapidly in the next five years. Revenues reached $77 million for the first nine months of 2011, up from $10 million, as the rental fleet rapidly expanded from 692 at the start of 2010 to approximately 26,000 this year.