Mixed Performance For Today's 2 IPOs

Includes: PDH, TLYS
by: Renaissance Capital IPO Research

Two IPOs opened for trading today bringing this week's total to 6 IPO pricings.

Tilly's (NYSE:TLYS), a specialty retailer of West Coast-inspired apparel, footwear and accessories, priced its 8 million share IPO at $15.50, above the $11.50-$13.50 range. The stock is expected to trade on the NYSE under the symbol TLYS. Goldman Sachs, BofA Merrill Lynch, Piper Jaffray, William Blair and Stifel Nicolaus Weisel were the underwriters on the deal.Tilly's was trading up 17% from its IPO price in morning trading.

Since 2008, the number of stores has increased from 61 to 145. Sales increased 20% to $401 million for the 12 months ended 1/28/2012 (comparable store sales growth was 11%), and net income rose 41% to $34 million. Preliminary results for the quarter ended 4/21/12 show comparable store sales growth of 4%.

PetroLogistics (NYSE:PDH), an LP that operates the world's largest propane dehydrogenation facility, raised $595 million on Thursday after pricing 35 million units (96% insider) at $17, the low end of the revised range of $17 to $19. The company had originally set a price range of $19 to $21. Morgan Stanley, Citi and UBS acted as the joint bookrunners on the deal. PetroLogistics fell below its offer price in its IPO debut.

PetroLogistics's facility processes propane into propylene, which is used in a variety of consumer and industrial applications, including paints, clothing, automotive parts and packaging. Production began in 2010 and reached 845 million pounds in 2011. Sales for the year were $615 million and net income was $22 million. Based on preliminary estimates, production for the quarter ended 3/31/12 increased 129% to 331 million pounds.

The IPO market has seen postive returns so far this year. The FTSE Renaissance US IPO Index is up 13.8% YTD, compared to 10.7% for the S&P 500.