Astro set to fly, Truila does fly, Japan Airlines does not!, Talenx to try AGAIN!
Hello all - hope you all had a good week
US IPO Returns Year to date +23% US Average First Day Pop is 14%VS S&P 17.97%
There have been 139 IPOs priced globally YTD, a -49.8% change from last year.
Total proceeds raised in USD were $67.7 bn globally YTD, a -40.9% change from last year.
The two pieces of news this week that caught my attention was the pricing of Astro Malaysia and the opening day performance of TruilaAstro as some of you might have read from my mid-week commentary - Astro set the new price range set at 2.70-3.00 ringgit per share giving it a market cap in the mid of the range at RM13.46bn and a trailing PE of around 21 which is far more acceptable than the original 3.60 ringgit that had been suggested and I continue to believe that with the strong Malaysian IPO market this is very likely to do well.
EVEN better news Is the news that they have lined up 16 cornerstone investors which have placed bids for more than 70% of the institutional shares as of last Thursday. The books are officially opened and close on 1st October with pricing and allocation on the 3rd or 4th.
Last week I highlighted Truila IPO - asking the question of whether it would be as popular as its year earlier predecessor Zillow. Well on Thursday we got the answer the stock opened at $22.10, up 30% from the initial-public-offering price of $17 and by the end of the day shares had gained $6.96, or 41%, to finish at $23.96.
Susser Petroleum Partners LP's (SUSP) limited partnership units ended up $2.41, or 12%, at $22.91 after opening as high as $23.40 up . The units give the holder a stake in income generated by the limited partnership, and trade on an exchange like stocks. Susser Petroleum finished firmly higher but eased back from its opening price of $23.40 up 14.5%
Investor demand was less robust for Thursday's financial offerings, two regional bank holding companies.
National Bank Holdings Corp. (NYSE:NBHC), which operates a network of more than 100 banks around Kansas City and across Colorado, rose 35 cents, or 1.8%, to $19.60.
Capital Bank Financial Corp. (NASDAQ:CBF) inched 19 cents higher, or 1.1%, to close at $18.19 after a flat open. The bank sold 10 million shares late Wednesday, after the size of the deal was reduced from 11.36 million.
Spirit Realty Capital Inc. (NYSE:SRC), a company that leases property to retail chains like Shopko Stores and Applebee's, finished flat at its IPO price of $15 after bobbing narrowly above and dipping below it throughout Thursday's session. It was the largest IPO of a real-estate investment trust since May 2011, according to Dealogic.
Wednesday saw the listing of this year's second largest IPO In the world the USD$8.5bn relisting of Japan Airways. After two days hovering just above issue price Japan Airlines slipped below its IPO pricing on Friday. The aftermarket was always a focus of the government ahead of the privatization, and with 70% of the ¥663.3bn (US$8.5bn) deal allocated to retail, trading below water was not meant to happen.
After trading in the grey market around 10% up on issue price, the Ministry of Finance is now holding on for a longer period of trading before making a decision about when or whether to proceed with the ¥750bn sale in Japan Tobacco.
In a surprise U-turn, Talanx AG, Germany's third-largest insurance group, Thursday resumed plans to launch an initial public offering only eight days after canceling it.
Talanx said it changed its mind "following encouraging unsolicited responses from equity market participants" in the past few days, and that the offer period will start Friday.
In what would be Germany's largest IPO so far this year, the insurer wants to raise about €500 million by selling shares in a price range of €17.30 to €20.30 per share, to help repay loans and fund growth. The price range values Talanx at €4.4 billion to €5 billion.
Looking forward to this week - I already highlighted Qualys which I think will be the start performer of the week -and we I also keep an eye on Grupo Santander and its massive $4.5bn USD deal. This could be a real turn around point for IPO's non technology based.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.