Six new IPOs scheduled for the week of March 19. Ranked by IPO value they are:
VANTIV: $500 million IPO
Based in Cincinnati, Ohio, Vantiv,Inc. (VNTV) scheduled a $500 million IPO with a market capitalization of $3.6 billion at a price range mid-point of $17 for Thursday, March 22, 2012.
Vantiv Holding is a leading, integrated payment processor differentiated by a single, proprietary technology platform.
VNTV is the public vehicle for Vantiv Holding. Vantiv Holding originated as a division of Fifth Third Bank Bancorp (FITB). FITB has $117 billion in assets as of December 31, 2012 and a market capitalization of $13 billion.
In FITM's annual report as of December 31, 2012, FITB's investment in Vantiv Holding is valued at $576 million, page 113, which at the price range mid-point of $17 is 2 ½ times the value of $576 million carried FITM's December 31, 2011 books. Managers: J.P. Morgan: Morgan Stanley.
WHITING USA TRUST II: $320 million IPO
Based in Austin, Texas, Whiting USA Trust II (WHZ) scheduled a $320 million IPO with a market capitalization of $368 million at a price range mid-point of $20 for Friday, March 23, 2012.
Whiting USA Trust II was formed by Whiting Petroleum Corporation to own a term net profits interest in certain long-lived, predominantly producing properties located primarily in the Rocky Mountains, Permian Basin, Gulf Coast and Mid-Continent regions of the United States.
The parent Whiting Petroleum (WLL) has a market capitalization of $6.7 billion. Managers: Raymond James; Morgan Stanley.
EXACT TARGET: $136 million IPO
Based in Indianapolis, Indiana, ExactTarget (ET) scheduled a $136 million IPO with a market capitalization of $1 billion at a price range mid-point of $16 for Thursday, March 22, 2012.
ET characterizes itself as a software as a service company specializing in cross-channel interactive marketing. 2011 revenue increased 54% to $207 million from $134 million in 2011. Losses increased to 17% of revenue from 9% of revenue.
EBITDA was negative for the second year in a row. Manager, Joint Managers: J.P. Morgan; Morgan Stanley
BATS GLOBAL MARKETS: $107 million IPO
Based in Lenexa, Kansas, BATS Global Markets (BATS) scheduled a $107 million IPO with a market capitalization of $809 million at a price range mid-point of $17 for Friday, March 23, 2012.
BATS develops and operates electronic markets for the trading of listed cash equity securities in the United States and Europe and listed equity options in the United States. Founded in 2005 with 13 employees BATS became profitable after its second year.
BATS is third largest exchange operator in the United States after NYSE Euronext and The NASDAQ OMX Group, Inc. Unlike traditional market operators, BATS is a technology company at its core. BATS developed, owns and operates the BATS trading platform.
Including fees BATS is required to collect, proforma revenue for 2011 was $1 billion. Manager, Joint Managers: Morgan; Citigroup; Credit Suisse
VIPSHOP HOLDINGS: $106 million
Based in Guangzhou, China, Vipshop Holdings (VIPS) scheduled a $106 million IPO with a market capitalization of $463 million at a price range mid-point of $9.50 per ADR for Friday, March 23, 2012.
VIPS is China's leading online discount retailer for brands. VIPS is running of low gross margin in the 20% with a high loss rate. For example in the December 2011 quarter revenue was $105 million up 98% from the September quarter and losses increased to $64 million from $18 million, some of which are due to stock compensation charges.
VIPS is yet another China-based company that wants to go public through a convoluted organizational structure designed to protect the true business owners. See organizational chart here
CAESARSTONE-SDOT: $100 million IPO
Based in Menashe, Israel, CaesarStone Sdot-Yam Ltd. (CSTE) scheduled a $100 million IPO with a market capitalization of $486 million at a price range mid-point of $15 for Friday, March 23, 2012.
CSTE is a leading manufacturer of high quality engineered quartz surfaces sold under the premium Caesarstone brand. Revenue increased 30% to $260 million for 2011 from $199 million in 2010. Reported net income was flat at $29 million.
CSTE attributes its recent sales growth to the acquisition of the business of its former Australian and U.S. distributors, the transition to direct distribution in Canada, penetration of new markets, increased operational efficiencies, and a change in product mix. Manager: J.P. Morgan; Barclays.