Two IPOs are coming to town this week with all the fanfare of a three-ring circus. They are The Carlyle Group L.P. (CG) and Tilly's (TLYS). The question is, "What will the circus grounds look like after their opening-day show is over?"
Apollo priced its IPO in March 2011 at $19 per share. It closed on Friday, April 27, 2012, at $13.11, DOWN 31 percent from its initial offering price.
Blackstone priced its IPO in June 2007 at $31 per share. It closed on Friday, April 27, 2012, at $13.34, DOWN 57 percent from its initial offering price.
This week, it's Carlyle's turn.
From Washington to Wall Street
The Carlyle Group plans to price 30.5 million common units at $23 to $25 each on Wednesday evening. The IPO is expected to start trading on Thursday morning on the NASDAQ Global Market under the proposed symbol "CG." The joint-lead managers are J.P. Morgan, Citigroup and Credit Suisse.
Based in Washington, D.C., Carlyle is one of the world's largest multi-product global alternative asset management firms. The company operates in four segments: corporate private equity, real assets, global market strategies and Fund of Funds Solutions. Carlyle was formed in 1987. It has about 1,300 employees.
The Carlyle Group will offer all the units in the offering. It expects to have about 30.5 million common units outstanding after the offering (or 304,500,000 common units if all outstanding Carlyle Holdings partnership units held by its existing owners were exchanged for newly-issued common units on a one-for-one basis).
The Carlyle Group's competitors are components of the Dow Jones U.S. Asset Managers Index. The Index has been an outperformer this year. On Friday, April 27, the Index was up 17.9 percent for the year versus an 11.6 percent gain by the S&P 500 Index.
Tilly's motto is uncomplicated, like the teen surfers and skateboarders who wear the clothes: "If it's not here . . . it's not happening."
Tilly's plans to price 8 million shares of Class A common stock at $11.50 to $13.50 each on Thursday evening. The IPO is expected to start trading on Friday morning on the New York Stock Exchange under the proposed symbol "TLYS." The joint-lead managers are Goldman Sachs, BofA Merrill Lynch and Piper Jaffray.
Based in Irvine, California, Tilly's is a fast-growing West Coast-based specialty retailer offering apparel, footwear and accessories. The company operates 140 stores in 14 states. Tilly's believes it offers the most sought-after lifestyle brands in action sports, music, art and fashion to teens and young adult consumers. Tilly's was formed in 1982. It has about 3,600 employees.
Tilly's plans to offer about 7.6 million shares of Class A common stock and selling shareholders plan to offer about 400,000 shares of Class A common stock. The company expects to have about 8 million shares of Class A common stock and about 19.6 million shares of Class B common stock outstanding after the offering.
Tilly's competitors are components of the Dow Jones U.S. Specialty Retailers Index sector. The Index has been an outperformer this year. On Friday, the Index was up 19.2 percent for the year versus an 11.6 percent gain by the S&P 500 Index.
This week's IPO calendar consists of six deals expecting to raise about $2.3 billion.
Yes, there are a couple of biggies among those marching down Wall Street. The Carlyle Group is looking to raise $732 million. PetroLogistics LP (PDH), a Houston-based propylene limited partnership, aims to raise $700 million.
PetroLogistics plans to price 35 million trust units at $19 to $21 each. Note: The company expects to make cash distributions of $2.20 per unit over the next 12 months.
Rounding out the list: EverBank Financial (EVER), a Jacksonville, Florida-based banking institution; Pacific Coast Oil Trust (ROYT), an Austin, Texas-based oil and natural gas limited partnership. Note: The company expects to make cash distributions of $1.80 per unit over the next 12 months. And Supernus Pharmaceuticals (SUPN), a specialty pharmaceutical company that is a carryover from last week.
Money, oil and drugs account for the major types of businesses represented by most of this week's IPO calendar. It's only natural to wonder if that mix will translate into a good payday for IPO investors.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do they trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.