This IPO market seems to be heating up for three reasons : (1) the Facebook 'effect' (2) Nasdaq is at the highest recovery point since March 2000 (3) Interest rates remain very low.
Nine deals "puts this month on track to be the second-busiest March since 2000" according to IPO Scoop. For a summary see the IPO calendar, which includes an IPO originally scheduled for the week of January 30.
Organized by business segment, new IPOs scheduled for the week of March 26 are:
Annie's: $75 million IPO
Based in Berkeley, CA, Annie's (proposed BNNY) scheduled a $75 million with a market capitalization of $252 million at a price range mid-point of $15 for Wednesday, March 28, 2012. Managers: Credit Suisse; J.P. Morgan.
BNNY is a natural and organic food company with a widely recognized brand, with 24% of net sales going to Target (NYSE:TGT) and Costco (NASDAQ:COST). According to BNNY the company has the #1 natural and organic market position in four product lines: macaroni and cheese, snack crackers, fruit snacks and graham crackers.
Large mainstream conventional packaged foods competitors include Kraft Foods (KFT), General Mills (NYSE:GIS), Campbell Soup Company (NYSE:CPB), PepsiCo (NYSE:PEP), Nestle S.A. and Kellogg (NYSE:K). Natural and organic packaged foods competitors include The Hain Celestial Group (NASDAQ:HAIN), Newman's Own, Inc., Nature's Path Foods, Inc., Clif Bar & Company, and Amy's Kitchen.
CafePress : $77 million IPO
Based in San Mateo, California (proposed CPRS) scheduled a $77 million IPO with a market capitalization of $289 million at a price range mid-point of $17 for Thursday March 29, 2012. CPRS itself is selling 2.5 million shares. Stockholders plan on selling 2 million shares, or 44.4%. Managers: J.P. Morgan; Jefferies.
CPRS is a leading e-commerce platform enabling customers worldwide to create, buy and sell a wide variety of customized and personalized products.
Competition includes e-commerce companies such as Amazon.com (NASDAQ:AMZN) and eBay (NASDAQ:EBAY), and online providers allowing users to customize goods in specific vertical markets, such as VistaPrint (NASDAQ:VPRT) for small businesses and Shutterfly (NASDAQ:SFLY) for photographic products.
MOBILE ADVERTISING & MOBILE COMMUNICATION
Millennial Media: $102 million IPO
Based in Baltimore, Maryland, Millennial Media (proposed MM) scheduled a $102 million IPO with a market capitalization of $750 million at a price range mid-point of $10 for Thursday, March 29, 2012. Managers: Morgan Stanley; Goldman, Barclays.
Vocera Communications: $75 million IPO
Based in San Jose, California, Vocera Communications (proposed VCRA) scheduled a $75 million IPO with a market capitalization of $282 million at a price range mid-point of $13 for Friday, March 30, 2012. Managers: J.P. Morgan; Piper Jaffray.
VCRA provides mobile communication solutions for hospitals. Its solutions are employed in 9% of the U.S. hospitals. VCRA was founded in 2002.
Rexnord Corp.: $450 million IPO
Based in Milwaukee, Wisconsin, Rexnord (proposed RXN) scheduled a $450 million IPO with a market capitalization of $1.7 billion at a price range mid-point of $19 for Thursday, March 29, 2012. Managers: BofA; Goldman; Credit; Deutsche; Barclays.
A product of a leveraged buyout, RXN is an industry leader in dull and boring markets: industrial process control customers (2/3 of sales) and municipal governments, primarily for water & waste water treatment products. Apollo Global Management (NYSE:APO) affiliates control 94% of RXN's stock pre-IPO.
Regional Management: $76 million IPO
Based in Greenville, South Carolina, Regional Management Corp. (proposed RM) scheduled a $76 million IPO with a market capitalization of $216 million at a price range mid-point of $18 for Wednesday, March 28, 2012. Managers: Jefferies; Stephens.
RM is in the specialty finance business providing credit to credit-challenged individuals in four south-eastern states. RM is 75% owned pre-IPO by private equity funds, and the IPO proceeds from 2.8 million company shares are allocated to repay debt, except for $1.4 million allocated to pay a management termination fee to RM's private equity sponsors. Shareholders intend to sell 1.4 million shares.
The largest installment loan competitor in most of the markets is World Acceptance Corp (NASDAQ:WRLD), an installment finance lender with approximately 1,120 branches, half of which are located in states that RM serves. Capital One (NYSE:COF) also competes in the same business segment.
Enphase Energy: $80 million IPO
Based in Petaluma, California, Enphase Energy (proposed ENPH) scheduled an $80 million IPO with a market capitalization of $375 million at a price range mid-point of $11 for Friday, March 30, 2012.
Managers: Morgan Stanley; BofA; Deutsche.
ENPH developed a semiconductor 'inverter' based approach to converting direct current produced from solar energy devices to alternating current, used to distribute electricity to homes & most businesses.
ENPH is currently an industry leader but is not making money, and doesn't expect to make money in 2012. The company was founded in 2006 and to far has pretty much had its market to itself.
However, competition is coming. SMA Solar Technology AG, Power-One (NASDAQ:PWER) and SunPower (NASDAQ:SPWR), leading inverter vendors serving the residential and small commercial inverter markets, are expected to introduce microinverter products in 2012.
GasLog Ltd: $400 million
Based in Bermuda with executive offices in Monanco, GasLog Ltd. (proposed GLOG) scheduled a $400 million IPO with a market capitalization of $1.071 billion at a price range mid-point of $17 for Friday, March 30, 2012. Managers: Goldman, Sachs; Citigroup; J.P. Morgan; UBS.
GLOG is growth-oriented international owner, operator and manager of liquefied natural gas ("LNG") carriers providing support to international energy companies as part of their LNG logistics chain.
GLOG's owned fleet consists of 10 wholly owned LNG carriers, including two ships delivered to in 2010 and eight LNG carriers to be constructed by the world's leading LNG shipbuilder, Samsung Heavy Industries.
Competition includes the major owners of LNG carriers include MISC Group, Qatar Gas, NYK, MOL, Teekay Tankers (NYSE:TNK) and Golar LNG Partners LP (NASDAQ:GMLP). Golar LNG Partners was formed by Golar LNG (NASDAQ:GLNG) Limited (Golar) to own and operate floating storage and regasification units and liquefied natural gas carriers under long-term charters.
Luca Technologies: $102 million IPO
Based in Golden, Colorado, Luca Technologies (proposed LUCA) scheduled an $102 million IPO with a market capitalization of $337 million at a price range midpoint of $12 for Friday, March 30, 2012. Managers Citigroup; Piper Jaffray; Raymond James.
Luca uses biotechnology to create and sustainably produce natural gas. On December 16, 2011, Luca entered into a Development and Commercialization Agreement with a division of Royal Dutch Shell plc (NYSE:RDS.B), Shell International Exploration and Production Inc. (Shell). LUCA and Shell will work together to advance an understanding of the mechanisms of microbial coal conversion to methane and to develop optimal strategies to propagate nutrient-bearing water within coal formations.