The IPO Buzz: IPOs Run With The Bulls

by: IPOScoop

What's a bull market without an IPO calendar? Happy to report, we have both. The major U.S. stock market indexes closed on Friday, Sept. 14, 2012, at levels that they haven't seen in years. And this week's calendar boasts seven deals expecting to raise about $1.3 billion.

The Dow Jones Industrial Average closed on Friday at 13,593.37. The last time it ended higher was on Oct. 10, 2007, at 13,727.03. And at Friday's close, it was up 27.6 percent from its 12-month closing low of 10,655.13 set on Oct. 3, 2011.

The Standard & Poor's 500 Index closed on Friday at 1,465.77. The last time it finished higher was on Dec. 31, 2007, at 1,468.36. And at Friday's closing bell, the S&P 500 was up 33.3 percent from its 12-month closing low of 1,099.63 set on Oct. 3, 2011.

The Nasdaq Composite Index closed on Friday at 3,183.95. The last time it ended higher was on Nov. 9, 2000, at 3,200.35. That was a great way to end a week. And at Friday's closing bell, the Nasdaq was up 36.3 percent from its 12-month closing low of 2,335.83 set on Oct. 3, 2011.

That brings us to this week's IPO calendar.

There are three financial companies looking to go public, one limited partnership, a biotech, an electric vehicle manufacturer and an Internet real estate services provider.

Most Wanted: Trulia

"The pick of the week" is the Internet deal, according to the IPO handicappers.

Trulia plans to price 6 million shares at $14 to $16 each on Wednesday evening. The IPO is expected to start trading on Thursday morning on the New York Stock Exchange under the proposed symbol "TRLA" and the S-1 filing is here. The joint-lead managers are J.P. Morgan and Deutsche Bank Securities. The co-managers are RBC Capital Markets, Needham & Company and William Blair.

Based in San Francisco, Trulia is an online real estate information provider with a database of more than 110 million properties, including 4.5 million homes for sale and rent. Trulia was formed in 2005. It has about 462 employees.

Among the company's major risk factors, according to its prospectus, are:

"We have a limited operating history in an evolving industry, which makes it difficult to evaluate our future prospects and may increase the risk that we will not be successful.

"We have a history of losses and we may not achieve or maintain profitability in the future.

"We have not been profitable on a quarterly or annual basis since we were founded, and as of June 30, 2012, we had an accumulated deficit of $43.8 million."

But no matter - people have been looking at a competitor - Zillow (Z) for guidance. On July 20, 2011, Zillow priced its IPO of 3.5 million shares at $20. The IPO opened at $60, closed its opening day at $35.77, and ended on Friday, Sept. 14, 2012, at $42.72 - UP 113.6 percent from its initial offering price.

Trulia plans to sell 5 million shares and selling shareholders plan to sell 1 million shares. The company expects to have about 26.4 million shares outstanding after the offering.

Industrial Sector:

Trulia's industrial sector, Real Estate Operations, has been an outperformer this year. On Friday, Sept. 14, the sector's index was up 24 percent for the year versus a 14.7 percent gain by the S&P 500 Index.

Rounding Out the Week

This week's IPO calendar includes:

Black Gold

Susser Petroleum Partners plans to price 9.5 million common units at $19 to $21 each on Wednesday evening. The IPO is expected to start trading on Thursday morning on the New York Stock Exchange under the proposed symbol "SUSP." The joint-lead managers are BofA Merrill Lynch, Barclays, Wells Fargo Securities and UBS Investment Bank. The co-managers are RBC Capital Markets, Raymond James, BMO Capital Markets, Baird and Janney Montgomery Scott.

Based in Houston, Susser Petroleum is a limited partnership formed by Susser Holdings Corporation (SUSS) to engage in the primarily fee-based wholesale distribution of motor fuels to Susser Holdings and third parties.

The company plans to make a minimum quarterly distribution of $0.4375 per unit for each quarter, or $1.75 per unit on an annualized basis, to yield 8.75 percent based upon the mid-point of its filing price.

Due to the Rosh Hashanah observance, no IPO pricings will take place this week until Wednesday evening, Sept. 19, when five are expected. The other two IPOs are planned for pricing on Thursday evening.

Stay tuned.

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.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.