Recent Large Company Filings Bulk Up The IPO Pipeline

Includes: ASN, COS, COTY, DMSH, I, ZTS
by: Renaissance Capital IPO Research

As we recently noted, private companies have been capitalizing on confidential U.S. filings, which has lead to a reduction in "public filings" and consequently the U.S. IPO pipeline. However, since most if not all of the smaller companies have chosen to pursue their registration confidentially, larger companies have begun to fill out the pipeline. Since April, there have been 37 U.S. IPO filings, of which 13 are believed to be seeking more than $300 million and six that could seek close to $1 billion or more.

The first two potential billion IPOs that entered the pipeline post JOBS Act include Chesapeake-owned (NYSE:CHK) oil and gas service provider Chesapeake Oilfied Services (COS), which filed in April to raise $863 million, and the world's largest enterprise satellite provider Intelsat SA (NYSE:I), which filed in May to raise up to $1.8 billion. June added two more significant IPOs when Realogy parent Domus Holdings (DMSH) filed to raise up to $1.0 billion and global fragrance company Coty (NYSE:COTY) filed for a $700 million IPO. Coty is rumored to be seeking a valuation of more than $7 billion.

Company Ticker Date Filed Deal Size ($mm)
Chesapeake Oilfield Services COS 16-Apr $863
Intelsat SA I 18-May $1,750
Domus Holdings DMSH.RC 8-Jun $1,000
Coty COTY 29-Jun $700
Archstone ASN 10-Aug $500*
Zoetis ZOET.RC 13-Aug $2,000*
Click to enlarge

*Renaissance Capital estimate

Over the past week, Lehman Brothers' biggest property holding Archstone (ASN) and Pfizer's (NYSE:PFE) animal health unit Zoetis (ZOET) filed for initial public offerings. While both S-1s indicated that they were seeking to raise $100 million, that number is merely a placeholder and both IPOs have the potential to raise $1 billion or more. In total, the recent influx of large filings has created a pipeline of roughly 20 companies looking to raise more than $500 million; more than half of these have submitted new or amended filings within the last 90 days.