Today's 2 IPOs Show Positive Returns

Includes: EVAC, IRG
by: Renaissance Capital IPO Research

Two IPOs debuted today with postive returns.

Ignite Restaurant Group (NASDAQ:IRG), which operates the Joe's Crab Shack and Brick House Tavern + Tap restaurant brands, raised $81 million on Thursday by offering 5.8 million shares at $14, the high end of the range of $12 to $14. Ignite Restaurant Group listed on the Nasdaq under the symbol IRG. Credit Suisse, Baird and Piper Jaffray acted as lead managers on the deal. Ignite had a mid-day return of 23%.

The company currently has 138 locations in 31 states. For the quarter ended 3/26/2012, revenue increased 18% to $103 million and net income doubled to $2 million. The company was fully owned by private equity firm J.H. Whitney, which sold 1% of its stake and will control 71% of shares after the offering.

Edwards Group (NASDAQ:EVAC), which makes vacuum and abatement systems for semiconductor and other industries, raised $100 million on Thursday by offering 12.5 million ADSs at $8, below the revised range of $9 to $10. The company had previously filed a price range of $11 to $13. Edwards Group listed on the Nasdaq under the symbol EVAC. Barclays, Goldman and Deutsche Bank acted as lead managers on the deal. Edwards was trading up 8% mid-day.

Sales for Edwards increased 9% to $1.09 billion in 2011. While gross margin declined 150 basis points to 37%, operating income improved 35% to $159 million. Net income for the year was $88 million. Edwards Group began operations in 1919 and was acquired in 1968 by The BOC Group, which traded on the LSE. Private equity firms CCMP Capital and Unitas Capital Investors acquired the company in May 2007 and continue to own a substantial majority of shares.

At the start of this week, there were 12 deals expected on the IPO calendar, but only 5 began trading.