Renaissance Capital IPO Research's Instablog Renaissance Capital’s research analysts provide unbiased and comprehensive coverage of the U.S. and international IPO markets. Through Renaissance Capital’s research service, clients get a hard-nosed, independent opinion, in-depth fundamental analysis and customizable financial models on all IPOs. Our clients also gain access to the premier IPO knowledge base with deal calendars, market commentary, fundamental data on over 5,000 past IPOs and more. Renaissance Capital research professionals frequently appear on television, radio and in print on the subject of IPOs. Renaissance Capital IPO Research http://seekingalpha.com Renren's IPO: Friending US Investors http://seekingalpha.com/instablog/18430-renaissance-capital-ipo-research/174526-renren-s-ipo-friending-us-investors?source=feed 174526 This week will see one of the year's most anticipated IPOs as Renren, China's largest "real name" social network with 117 million users, goes public. As the first of the world's major social networks to attempt an IPO, it is poised to benefit from significant investor enthusiasm surrounding social networking. Additionally, following strong debuts by other recent Chinese internet IPOs like Youku.com (+366%) and Qihoo 360 (+95%), investors are clearly excited by the secular story of China's increasing internet penetration and the country's rapid forecasted online advertising growth. After raising its anticipated price range to $12-$14 from $9-$11 in a sign of strong demand, Renren now seeks to raise $690 million and will also receive a concurrent $110 million investment from Chinese internet company Alibaba and investment firms China Media Capital and CITIC. Morgan Stanley, Deutsche Bank and Credit Suisse are the bookrunners on the offering, which is on this week's IPO calendar. The stock is expected to price Tuesday and begin trading on the NYSE under the ticker "RENN" on Wednesday.

History

Renren was launched in 2005 by a US-educated Chinese entrepreneur as a site where college students could connect and communicate and has since followed a similar evolution to Facebook's, broadening its user base to include high school students and young professionals. It has also gradually increased the stickiness of its site by introducing online games, streaming music and other features and opening the platform to third-party apps, which now number 1,700. These efforts have helped Renren increase its registered user base from 33 million at the end of 2008 to 117 million today; over the same period, its active users have grown from 17 million to 31 million.

Revenue

Renren generated $77 million in revenue in 2010 (up 64% from 2009), the majority of which was split between advertising revenues and online gaming fees paid by users to buy virtual items. The company expects online advertising to increase as a percentage of revenue going forward, driven by continued growth in its user base and increased monetization. Revenue growth is also expected to be driven by its recently launched Groupon-like social commerce website Nuomi.com. Nuomi.com generated $1 million in revenue since its launch in mid-2010 and the company is investing heavily in it in an attempt to make it a significant contributor to overall revenue.

Market/competition

China currently has 457 million internet users, 38% of which engage in online social networking. Based on Renren's 117 million users, this implies a 48% market share. That said, only 31 million (26%) of Renren's users are currently active and many Chinese are members of multiple social networks. Other major social networks include Kaixin001 (which has 95 million registered users and is reportedly planning a US IPO) and 51.com. Renren also competes with Tencent's Qzone, which is larger but not considered a "real name" social network since users frequently use screen names. Competition is a key risk for Renren, particularly with Facebook reportedly considering entering China (likely in partnership with Baidu). Additionally, Renren's Nuomi.com competes with several other Chinese sites as well as Groupon, which recently launched in China.

Other risks

While Renren's growth over the last several years has been very impressive, its revenue fell sequentially in the two most recent quarters, which is a cause for concern. Although there is seasonality to the business, the trend may suggest that monetization of its user base is becoming more difficult. Perhaps more concerning is the relatively slow growth in the number of advertisers, which rose only 11% in 2010. With gaming revenue unlikely to be a large growth driver, the company is investing heavily in its social commerce site Nuomi.com, and this higher investment pushed Renren's operating margin negative in the March quarter. Nuomi.com has yet to gain significant traction and will continue to be a drag on margins for at least the remainder of 2011.

Outlook

Despite these concerns, we believe investors will be drawn to Renren because of the excitement surrounding the global social networking industry and anticipation for eventual IPOs from Facebook, Groupon and LinkedIn. Reported valuations for Facebook and Groupon have continued to increase rapidly, as have multiples being placed on recent online video portal IPO Youku.com ($6.2 billion enterprise value, 108x LTM sales) which we believe will put Renren's seemingly high proposed valuation ($5.4 billion market cap and an enterprise-value-to-LTM-sales multiple of 53x) into context. Ultimately, with investors seeking exposure to social networking companies and putting high valuations on Chinese internet leaders, we expect Renren to be a hot IPO. That said, further out the company will have to make good on its goal of rapid user growth and increased user monetization in order to support its multibillion valuation, or else risk disappointing investors with very high expectations.


]]> Tue, 03 May 2011 15:55:06 -0400 This week will see one of the year's most anticipated IPOs as Renren, China's largest "real name" social network with 117 million users, goes public. As the first of the world's major social networks to attempt an IPO, it is poised to benefit from significant investor enthusiasm surrounding social networking. Additionally, following strong debuts by other recent Chinese internet IPOs like Youku.com (+366%) and Qihoo 360 (+95%), investors are clearly excited by the secular story of China's increasing internet penetration and the country's rapid forecasted online advertising growth. After raising its anticipated price range to $12-$14 from $9-$11 in a sign of strong demand, Renren now seeks to raise $690 million and will also receive a concurrent $110 million investment from Chinese internet company Alibaba and investment firms China Media Capital and CITIC. Morgan Stanley, Deutsche Bank and Credit Suisse are the bookrunners on the offering, which is on this week's IPO calendar. The stock is expected to price Tuesday and begin trading on the NYSE under the ticker "RENN" on Wednesday.

History

Renren was launched in 2005 by a US-educated Chinese entrepreneur as a site where college students could connect and communicate and has since followed a similar evolution to Facebook's, broadening its user base to include high school students and young professionals. It has also gradually increased the stickiness of its site by introducing online games, streaming music and other features and opening the platform to third-party apps, which now number 1,700. These efforts have helped Renren increase its registered user base from 33 million at the end of 2008 to 117 million today; over the same period, its active users have grown from 17 million to 31 million.

Revenue

Renren generated $77 million in revenue in 2010 (up 64% from 2009), the majority of which was split between advertising revenues and online gaming fees paid by users to buy virtual items. The company expects online advertising to increase as a percentage of revenue going forward, driven by continued growth in its user base and increased monetization. Revenue growth is also expected to be driven by its recently launched Groupon-like social commerce website Nuomi.com. Nuomi.com generated $1 million in revenue since its launch in mid-2010 and the company is investing heavily in it in an attempt to make it a significant contributor to overall revenue.

Market/competition

China currently has 457 million internet users, 38% of which engage in online social networking. Based on Renren's 117 million users, this implies a 48% market share. That said, only 31 million (26%) of Renren's users are currently active and many Chinese are members of multiple social networks. Other major social networks include Kaixin001 (which has 95 million registered users and is reportedly planning a US IPO) and 51.com. Renren also competes with Tencent's Qzone, which is larger but not considered a "real name" social network since users frequently use screen names. Competition is a key risk for Renren, particularly with Facebook reportedly considering entering China (likely in partnership with Baidu). Additionally, Renren's Nuomi.com competes with several other Chinese sites as well as Groupon, which recently launched in China.

Other risks

While Renren's growth over the last several years has been very impressive, its revenue fell sequentially in the two most recent quarters, which is a cause for concern. Although there is seasonality to the business, the trend may suggest that monetization of its user base is becoming more difficult. Perhaps more concerning is the relatively slow growth in the number of advertisers, which rose only 11% in 2010. With gaming revenue unlikely to be a large growth driver, the company is investing heavily in its social commerce site Nuomi.com, and this higher investment pushed Renren's operating margin negative in the March quarter. Nuomi.com has yet to gain significant traction and will continue to be a drag on margins for at least the remainder of 2011.

Outlook

Despite these concerns, we believe investors will be drawn to Renren because of the excitement surrounding the global social networking industry and anticipation for eventual IPOs from Facebook, Groupon and LinkedIn. Reported valuations for Facebook and Groupon have continued to increase rapidly, as have multiples being placed on recent online video portal IPO Youku.com ($6.2 billion enterprise value, 108x LTM sales) which we believe will put Renren's seemingly high proposed valuation ($5.4 billion market cap and an enterprise-value-to-LTM-sales multiple of 53x) into context. Ultimately, with investors seeking exposure to social networking companies and putting high valuations on Chinese internet leaders, we expect Renren to be a hot IPO. That said, further out the company will have to make good on its goal of rapid user growth and increased user monetization in order to support its multibillion valuation, or else risk disappointing investors with very high expectations.


]]> renn IPO analysis Three more companies set IPO terms, six deals scheduled to price Thursday night http://seekingalpha.com/instablog/18430-renaissance-capital-ipo-research/44946-three-more-companies-set-ipo-terms-six-deals-scheduled-to-price-thursday-night?source=feed 44946 Three companies recently filed terms for their upcoming IPOs: Chesapeake Lodging Trust (CHSP), which plans to invest in upscale hotel properties, Patriot Risk Management (PMG), which provides workers' compensation insurance and risk transfer solutions and Ironwood Pharmaceuticals (IRWD), which develops drugs targeting therapeutic needs.

Chesapeake, which has no operating history to date, previously filed to go public and was set to begin trading on Dec. 8, 2009, along with Pebblebrook Hotel Trust (PEB). While Pebblebrook raised $350 million in its IPO, Chesapeake shelved its deal; its new terms trim the deal size by 40% (7.5 million shares at $20 instead of 12.5 million shares). The IPO is scheduled to price this Thursday, Jan. 21, along with five other companies: China Hydroelectric (CHC), Andatee Marine China Fuel (AMCF), Terreno Realty (TRNO), Symetra Financial (SYA) and Cellu Tissue Holdings (CLU).

Patriot Risk Management (PMG), which also filed terms yesterday, plans to raise $187 million by offering 17 million shares at a price range of $10-$12. The insurance company had previously filed terms on Oct. 2, 2008, offering 15 million shares at the same price range; it removed these terms on Nov. 9, 2009, several months after it was acquired by Inter-Atlantic Financial, a SPAC that went public in October of 2007. Patriot plans to list on the NYSE during the week of Feb. 1.

The third company to recently announce terms, Ironwood Pharmaceuticals (IRWD), is also slated to price that week. Ironwood, which is based in Cambridge, MA, plans to raise $250 million by offering 16.7 million class A shares at a price range of $14-$16. The early stage company has yet to develop or commercialize any products; however, its pipeline includes one Phase 3 drug candidate (linaclotide), one Phase 1 pain drug and several preclinical programs.

Recent filing activity and a full docket of upcoming deals indicate the IPO market is already poised for a healthy recovery in 2010.

Disclosure: No positions]]> Thu, 21 Jan 2010 18:28:47 -0500 Three companies recently filed terms for their upcoming IPOs: Chesapeake Lodging Trust (CHSP), which plans to invest in upscale hotel properties, Patriot Risk Management (PMG), which provides workers' compensation insurance and risk transfer solutions and Ironwood Pharmaceuticals (IRWD), which develops drugs targeting therapeutic needs.

Chesapeake, which has no operating history to date, previously filed to go public and was set to begin trading on Dec. 8, 2009, along with Pebblebrook Hotel Trust (PEB). While Pebblebrook raised $350 million in its IPO, Chesapeake shelved its deal; its new terms trim the deal size by 40% (7.5 million shares at $20 instead of 12.5 million shares). The IPO is scheduled to price this Thursday, Jan. 21, along with five other companies: China Hydroelectric (CHC), Andatee Marine China Fuel (AMCF), Terreno Realty (TRNO), Symetra Financial (SYA) and Cellu Tissue Holdings (CLU).

Patriot Risk Management (PMG), which also filed terms yesterday, plans to raise $187 million by offering 17 million shares at a price range of $10-$12. The insurance company had previously filed terms on Oct. 2, 2008, offering 15 million shares at the same price range; it removed these terms on Nov. 9, 2009, several months after it was acquired by Inter-Atlantic Financial, a SPAC that went public in October of 2007. Patriot plans to list on the NYSE during the week of Feb. 1.

The third company to recently announce terms, Ironwood Pharmaceuticals (IRWD), is also slated to price that week. Ironwood, which is based in Cambridge, MA, plans to raise $250 million by offering 16.7 million class A shares at a price range of $14-$16. The early stage company has yet to develop or commercialize any products; however, its pipeline includes one Phase 3 drug candidate (linaclotide), one Phase 1 pain drug and several preclinical programs.

Recent filing activity and a full docket of upcoming deals indicate the IPO market is already poised for a healthy recovery in 2010.

Disclosure: No positions]]> chc chsp amcf sya clu IPO activity continues with five deals planned for the week of Dec. 14 http://seekingalpha.com/instablog/18430-renaissance-capital-ipo-research/39782-ipo-activity-continues-with-five-deals-planned-for-the-week-of-dec-14?source=feed 39782 expected to price this week:

Cobalt International Energy (CIE), an oil E&P firm with deepwater prospects in the Gulf of Mexico and off West Africa, plans to raise $1 billion by offering 63 million shares at a price range of $15.00 to $17.00. At the mid-point of the proposed range, Cobalt will command a market value of $5.5 billion. Cobalt International Energy, which was founded in 2005, has not generated revenue to date and expects to begin commerical production in 2012. The Houston, TX-based company plans to list on the NYSE under the symbol CIE with Credit Suisse, Goldman Sachs, and J.P. Morgan acting as the lead underwriters on the deal.

Crimson Exploration (CXPO), another independent oil and gas E&P company that operates in East and South Texas, plans to raise $126 million by offering 18 million shares at a price range of $6.00 to $8.00. At the mid-point of the proposed range, Crimson will command a market value of $211 million. Crimson Exploration, which was founded in 1987, booked $121 million in sales over the last 12 months. The Houston, TX-based company is currently listed on the OTC Bulletin Board and plans to make the move to the NASDAQ under the symbol CXPO. Barclays Capital and Credit Suisse are the lead underwriters on the deal.

Kraton Performance Polymers (KRA), the world's #1 producer of styrenic block copolymers backed by TPG/J.P. Morgan, plans to raise $175 million by offering 10.3 million shares at a price range of $16.00 to $18.00. At the mid-point of the proposed range, Kraton will command a market value of $504 million. Kraton, which was founded in 1955, booked $960 million in sales over the last 12 months. The Houston, TX-based company plans to list on the NYSE under the symbol KRA. Credit Suisse is the lead underwriter on the deal.

National Beef (NBR), the fourth largest beef processor in the US, plans to raise $276 million by offering 17.3 million shares at a price range of $15.00 to $17.00. At the mid-point of the proposed range, National Beef will command a market value of $988 million. National Beef, which was founded in 1992, booked $5.7 billion in sales over the last 12 months. The Kansas City, MO-based company plans to list on the NYSE under the symbol NBP with BofA Merrill Lynch and Credit Suisse acting as the lead underwriters on the deal.

Team Health Holdings (TMH), which is a Blackstone-backed provider of outsourced emergency room physician staffing, plans to raise $300 million by offering 20 million shares at a price range of $14.00 to $16.00. At the mid-point of the proposed range, Team Health will command a market value of $899 million. Team Health Holdings, which was founded in 1979, booked $1.4 billion in sales over the last 12 months. The Knoxville, TN-based company plans to list on the NYSE under the symbol TMH. BofA Merrill Lynch, Goldman Sachs, and Barclays Capital are the lead underwriters on the deal.

Disclosure: No positions]]> Mon, 14 Dec 2009 10:58:52 -0500 expected to price this week:

Cobalt International Energy (CIE), an oil E&P firm with deepwater prospects in the Gulf of Mexico and off West Africa, plans to raise $1 billion by offering 63 million shares at a price range of $15.00 to $17.00. At the mid-point of the proposed range, Cobalt will command a market value of $5.5 billion. Cobalt International Energy, which was founded in 2005, has not generated revenue to date and expects to begin commerical production in 2012. The Houston, TX-based company plans to list on the NYSE under the symbol CIE with Credit Suisse, Goldman Sachs, and J.P. Morgan acting as the lead underwriters on the deal.

Crimson Exploration (CXPO), another independent oil and gas E&P company that operates in East and South Texas, plans to raise $126 million by offering 18 million shares at a price range of $6.00 to $8.00. At the mid-point of the proposed range, Crimson will command a market value of $211 million. Crimson Exploration, which was founded in 1987, booked $121 million in sales over the last 12 months. The Houston, TX-based company is currently listed on the OTC Bulletin Board and plans to make the move to the NASDAQ under the symbol CXPO. Barclays Capital and Credit Suisse are the lead underwriters on the deal.

Kraton Performance Polymers (KRA), the world's #1 producer of styrenic block copolymers backed by TPG/J.P. Morgan, plans to raise $175 million by offering 10.3 million shares at a price range of $16.00 to $18.00. At the mid-point of the proposed range, Kraton will command a market value of $504 million. Kraton, which was founded in 1955, booked $960 million in sales over the last 12 months. The Houston, TX-based company plans to list on the NYSE under the symbol KRA. Credit Suisse is the lead underwriter on the deal.

National Beef (NBR), the fourth largest beef processor in the US, plans to raise $276 million by offering 17.3 million shares at a price range of $15.00 to $17.00. At the mid-point of the proposed range, National Beef will command a market value of $988 million. National Beef, which was founded in 1992, booked $5.7 billion in sales over the last 12 months. The Kansas City, MO-based company plans to list on the NYSE under the symbol NBP with BofA Merrill Lynch and Credit Suisse acting as the lead underwriters on the deal.

Team Health Holdings (TMH), which is a Blackstone-backed provider of outsourced emergency room physician staffing, plans to raise $300 million by offering 20 million shares at a price range of $14.00 to $16.00. At the mid-point of the proposed range, Team Health will command a market value of $899 million. Team Health Holdings, which was founded in 1979, booked $1.4 billion in sales over the last 12 months. The Knoxville, TN-based company plans to list on the NYSE under the symbol TMH. BofA Merrill Lynch, Goldman Sachs, and Barclays Capital are the lead underwriters on the deal.

Disclosure: No positions]]> nbr Last week sees eight companies file for IPOs http://seekingalpha.com/instablog/18430-renaissance-capital-ipo-research/36956-last-week-sees-eight-companies-file-for-ipos?source=feed 36956 filed with the SEC to go public last week, three of which were Chinese companies planning to offer American Depository Shares.

The week started off with Hirschfeld Industries (HSFD), a leading integrated provider of highly-engineered steel components for infrastructure applications, which filed on Monday to raise up to $150 million in its initial public offering. The San Angelo, TX-based company, which was founded in 1946 and booked $321 million in sales over the last 12 months, plans to list on the NYSE under the symbol HSFD. J.P. Morgan and Robert Baird are the lead underwriters on the deal.

Concord Medical Services (CCM) followed, filing on Tuesday to raise up to $100 million. The leading operator of radiotherapy and diagnostic imaging centers in China was founded in 2007 and booked $36 million in sales over the last 12 months. The Beijing-based company plans to list on the NYSE with Morgan Stanley, J.P. Morgan, and CICC acting as the lead underwriters on the deal.

On Wednesday, Linkage Technologies International Holdings (BOSS), a leading provider of software solutions and IT services for the telecommunications industry in China, filed to raise up to $175 million in its IPO. The Nanjing-based company, which commenced operations in 1997 and booked $122 million in sales over the last 12 months, plans to list on the NYSE. Proceeds from the deal will be used for research and development efforts, as well as general corporate purposes. Citi and Barclays Capital are the lead underwriters on the deal.

Online marketing company QuinStreet (QNST), which delivers measurable traffic results to clients in information-intensive industry verticals, filed on Thursday with the SEC to raise up to $250 million. The Foster City, CA-based company, which was founded in 1999 and booked $275 million in sales over the last 12 months, plans to list under the symbol QNST with Credit Suisse, BofA Merrill Lynch, and J.P. Morgan acting as the lead underwriters on the deal.

Rounding out the week were Calix Networks, Fabrinet, Ironwood Pharmaceuticals, and China Nuokang Bio-Pharmaceutical, all of which submitted their filings on Friday.

Calix Networks (CALX), which provides communications access systems and software that allow service providers (CSPs) to connect to their residential and business subscribers, was founded in 1999 and booked $215 million in sales over the last 12 months. The company plans to list on the NYSE under the symbol CALX and raise up to $100 million. Goldman Sachs, Morgan Stanley, and Jefferies are the lead underwriters on the deal.

Fabrinet (FN) provides foundry services to OEMs and sells application-specific bulk optical materials and filed to raise up to $150 million. The company was founded in 2000 and booked $392 million in sales over the last 12 months and plans to list on the NYSE under the symbol FN. Morgan Stanley and Deutsche Bank are the lead underwriters on the deal. Fabrinet had previously filed for a $250 million IPO earlier this year, but pulled the deal due to unfavorable market conditions.

Ironwood Pharmaceuticals (IRWD), which discovers, develops and intends to commercialize innovative medicines targeting therapeutic needs, filed to raise up to $173 million. The Boston-based company, which was founded in 1998 and booked $32 million in sales over the last 12 months, plans to list on the NASDAQ under the symbol IRWD with J.P. Morgan, Morgan Stanley and Credit Suisse acting as the lead underwriters on the deal.

In a smaller deal, China Nuokang Bio-Pharmaceutical (NKBP), plans to offer 5 million ADSs, including 473,000 from selling shareholders, at a price between $10 and $12 per ADS. The company sells 14 hematological and cardiovascular pharmaceutical products and will use Jefferies as the sole underwriter on the deal. The stock is expected to list on the NASDAQ.
]]> Mon, 23 Nov 2009 12:06:05 -0500 filed with the SEC to go public last week, three of which were Chinese companies planning to offer American Depository Shares.

The week started off with Hirschfeld Industries (HSFD), a leading integrated provider of highly-engineered steel components for infrastructure applications, which filed on Monday to raise up to $150 million in its initial public offering. The San Angelo, TX-based company, which was founded in 1946 and booked $321 million in sales over the last 12 months, plans to list on the NYSE under the symbol HSFD. J.P. Morgan and Robert Baird are the lead underwriters on the deal.

Concord Medical Services (CCM) followed, filing on Tuesday to raise up to $100 million. The leading operator of radiotherapy and diagnostic imaging centers in China was founded in 2007 and booked $36 million in sales over the last 12 months. The Beijing-based company plans to list on the NYSE with Morgan Stanley, J.P. Morgan, and CICC acting as the lead underwriters on the deal.

On Wednesday, Linkage Technologies International Holdings (BOSS), a leading provider of software solutions and IT services for the telecommunications industry in China, filed to raise up to $175 million in its IPO. The Nanjing-based company, which commenced operations in 1997 and booked $122 million in sales over the last 12 months, plans to list on the NYSE. Proceeds from the deal will be used for research and development efforts, as well as general corporate purposes. Citi and Barclays Capital are the lead underwriters on the deal.

Online marketing company QuinStreet (QNST), which delivers measurable traffic results to clients in information-intensive industry verticals, filed on Thursday with the SEC to raise up to $250 million. The Foster City, CA-based company, which was founded in 1999 and booked $275 million in sales over the last 12 months, plans to list under the symbol QNST with Credit Suisse, BofA Merrill Lynch, and J.P. Morgan acting as the lead underwriters on the deal.

Rounding out the week were Calix Networks, Fabrinet, Ironwood Pharmaceuticals, and China Nuokang Bio-Pharmaceutical, all of which submitted their filings on Friday.

Calix Networks (CALX), which provides communications access systems and software that allow service providers (CSPs) to connect to their residential and business subscribers, was founded in 1999 and booked $215 million in sales over the last 12 months. The company plans to list on the NYSE under the symbol CALX and raise up to $100 million. Goldman Sachs, Morgan Stanley, and Jefferies are the lead underwriters on the deal.

Fabrinet (FN) provides foundry services to OEMs and sells application-specific bulk optical materials and filed to raise up to $150 million. The company was founded in 2000 and booked $392 million in sales over the last 12 months and plans to list on the NYSE under the symbol FN. Morgan Stanley and Deutsche Bank are the lead underwriters on the deal. Fabrinet had previously filed for a $250 million IPO earlier this year, but pulled the deal due to unfavorable market conditions.

Ironwood Pharmaceuticals (IRWD), which discovers, develops and intends to commercialize innovative medicines targeting therapeutic needs, filed to raise up to $173 million. The Boston-based company, which was founded in 1998 and booked $32 million in sales over the last 12 months, plans to list on the NASDAQ under the symbol IRWD with J.P. Morgan, Morgan Stanley and Credit Suisse acting as the lead underwriters on the deal.

In a smaller deal, China Nuokang Bio-Pharmaceutical (NKBP), plans to offer 5 million ADSs, including 473,000 from selling shareholders, at a price between $10 and $12 per ADS. The company sells 14 hematological and cardiovascular pharmaceutical products and will use Jefferies as the sole underwriter on the deal. The stock is expected to list on the NASDAQ.
]]> Two REITs submit filings for IPOs despite Aviv's recent postponement http://seekingalpha.com/instablog/18430-renaissance-capital-ipo-research/34386-two-reits-submit-filings-for-ipos-despite-aviv-s-recent-postponement?source=feed 34386 Chatham Lodging Trust, a recently organized company planning to operate as a REIT and invest in upscale branded hotels, filed today with the SEC to raise up to $230 million in an initial public offering. Both of today's IPO filings were in the real estate sector, which has been active recently in hopes of taking advantage of uninspiring market conditions. The Palm Beach, FL-based company, which was founded just last month and has yet to acquire any properties, plans to list on the NYSE. Barclays Capital is the sole underwriter on the deal. No pricing terms were disclosed.

The two filings directly follow Aviv REIT's IPO postponement that was announced only yesterday. The company, which specializes in owning and acquiring skilled nursing facilities, cited poor market conditions as the primary reason behind shelving the deal.]]> Wed, 04 Nov 2009 19:03:38 -0500 Chatham Lodging Trust, a recently organized company planning to operate as a REIT and invest in upscale branded hotels, filed today with the SEC to raise up to $230 million in an initial public offering. Both of today's IPO filings were in the real estate sector, which has been active recently in hopes of taking advantage of uninspiring market conditions. The Palm Beach, FL-based company, which was founded just last month and has yet to acquire any properties, plans to list on the NYSE. Barclays Capital is the sole underwriter on the deal. No pricing terms were disclosed.

The two filings directly follow Aviv REIT's IPO postponement that was announced only yesterday. The company, which specializes in owning and acquiring skilled nursing facilities, cited poor market conditions as the primary reason behind shelving the deal.]]> Uninspiring performance from this week’s IPOs http://seekingalpha.com/instablog/18430-renaissance-capital-ipo-research/32778-uninspiring-performance-from-this-weeks-ipos?source=feed 32778 The performance of this week’s three IPOs proved to be uninspiring. 
 
Dole Food Company (DOLE), a leading global branded fruit and vegetable company, raised $446 million by offering 35,715,000 at $12.50, below the proposed range of $13.00 to $15.00. Goldman Sachs, BofA Merrill Lynch, and Deutsche Bank acted as lead managers on the deal. Dole opened Friday slightly below its IPO price, and slipped further throughout the day, trading down over -2%.
 
AGA Medical Holdings (AGAM), which makes minimally invasive devices to treat heart defects and vascular diseases, raised $199 million by offering 13.75 million shares at $14.50, below the downwardly-revised range of $15.00 to $16.00.  BofA Merrill Lynch, Citi, and Deutsche Bank were the lead managers on the deal. Though AGAM had a first day return of 0.7%, it is now trading at its IPO price of $14.50.
 
ZST Digital Networks (ZSTN), a Chinese TV set-top box provider, raised $25 million by offering 3.1 million shares at $8.00, the midpoint of the proposed $7.50 to $8.50 range. Rodman & Renshaw and WestPark Capital acted as lead managers on the deal. ZSTN fell -6.0% in its first day of trading Tuesday, falling lower in subsequent trading.

However, the IPO market continues its volume pick-up with three more deals on the IPO calendar for next week.  Addus HomeCare, which provides home-based personal care, skilled nursing and rehabilitative therapies, plans to raise $60 million.  Retailer Vitamin Shoppe exepcts to raise $136 million in its IPO.  Next week's largest deal will be emerging market energy infrastructure operator AEI, which plans to raise $750 million.]]> Fri, 23 Oct 2009 14:59:43 -0400 The performance of this week’s three IPOs proved to be uninspiring. 
 
Dole Food Company (DOLE), a leading global branded fruit and vegetable company, raised $446 million by offering 35,715,000 at $12.50, below the proposed range of $13.00 to $15.00. Goldman Sachs, BofA Merrill Lynch, and Deutsche Bank acted as lead managers on the deal. Dole opened Friday slightly below its IPO price, and slipped further throughout the day, trading down over -2%.
 
AGA Medical Holdings (AGAM), which makes minimally invasive devices to treat heart defects and vascular diseases, raised $199 million by offering 13.75 million shares at $14.50, below the downwardly-revised range of $15.00 to $16.00.  BofA Merrill Lynch, Citi, and Deutsche Bank were the lead managers on the deal. Though AGAM had a first day return of 0.7%, it is now trading at its IPO price of $14.50.
 
ZST Digital Networks (ZSTN), a Chinese TV set-top box provider, raised $25 million by offering 3.1 million shares at $8.00, the midpoint of the proposed $7.50 to $8.50 range. Rodman & Renshaw and WestPark Capital acted as lead managers on the deal. ZSTN fell -6.0% in its first day of trading Tuesday, falling lower in subsequent trading.

However, the IPO market continues its volume pick-up with three more deals on the IPO calendar for next week.  Addus HomeCare, which provides home-based personal care, skilled nursing and rehabilitative therapies, plans to raise $60 million.  Retailer Vitamin Shoppe exepcts to raise $136 million in its IPO.  Next week's largest deal will be emerging market energy infrastructure operator AEI, which plans to raise $750 million.]]> dole agam zstn.pk IPO