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  • Global IPO Market This Week  0 comments
    Sep 30, 2012 8:06 AM | about stocks: BSMX, SMLP, QLYS, ANFI, SSTK

    Astro Madness, Cloud Based Heaven, Dubai Rice IPO and how many more did you say?!?

    Hello all, hope you all had a good week - if you want to be involved in any of the IPO's let me know

    US IPO Returns Year to date +22% US Average First Day Pop is 14%VS S&P 16.44%

    There have been 142 IPOs priced globally YTD, a -49.5% change from last year.

    Total proceeds raised in USD were $71 bn globally YTD, a -40.1% change from last year.

    I have been talking very highly about Astro Malaysia in the last few weeks and as I predicted this deal is set to do really well. Institutional books have been oversubscribed by 10x as of Thursday last week with a few more days to go. It looks like Malaysia is not going to disappoint again.

    Let's look at some of last week's deals that I highlighted:

    The big deal of the week was obviously the $4.5bn USD listing of Shares of Grupo Financiero Santanders Mexico (NYSE:BSMX) SAB de CV dual listings in New York and Mexico City on Wednesday, and it was not to disappoint with the NYSE listing gaining 73 cents, or 6%, to close at $12.91 on the New York Stock Exchange, up from their $12.18 offering price. I think we might see this open the door to some further Mexican domestic stories looking for US listings.

    Summit Midstream's limited-partnership (NYSE:SMLP) units ended up $1.11, or 5.6%, at $21.11, after opening at $21 on the New York Stock Exchange. The Dallas-based owner of natural-gas transmission infrastructure sold 12.5 units Thursday night at $20, the midpoint of the proposed price range in a deal worth $250 million. If an overallotment of units is exercised, the listing could raise as much as $287 million.

    Although Shares of Cloud-based technology security provider Qualays (NASDAQ:QLYS) started the day trading flat it managed to close the day up $2.16, or 18%, to $14.16, after pricing shares the midpoint of its range, in this case $12. The offering totaled 7.6 million, with net proceeds expected at $71.8 million.

    As I continued saying for the last few months - its been a slow summer but ones the window opens its going to get really busy - in the US alone we have 14 deals that filed this week and gone live (see the list below)

    One that is of interest is Dubai based Amira Nature Foods (NYSE:ANFI), a processor, distributor and marketer of packaged Indian Basmati rice and snacks. The company plans to raise $126 million by offering 9 million shares at a price range of $13 to $15 giving the company a market cap of around $470 million at the midpoint. The company booked $328 million in sales for the 12 months ended 6/30/2012 ND $12 million in Profit for the same period. The Amira plans to use about $110 million of the proceeds to fund the purchase by Amira Mauritius of equity shares of Amira India pursuant to the share subscription agreement. Here is a link to the prospectus - http://www.nasdaq.com/markets/ipos/filing.ashx?filingid=8437375

    The manufacturer of plastic goods Berry Plastics Group (NYSE:BERY), announced terms for its IPO on Wednesday. It plans to raise $500 million by offering 29.4 million shares at a price range of $16.00 to $18.00 giving it a market cap of $2.1 billion. The company booked $4.8 billion in sales for the year ended June 30, 2012 with net loss of $212 million which was mostly due ot a $213 million tax charge. Apollo Management and Graham Partners acquired Berry Plastics for $2.25 billion in 2006 from Goldman Sachs Capital Partners and JP Morgan Partners. Following the offering, Apollo Funds will own about 53.5 percent of the company, while Graham Berry Holdings will have a 5 percent stake, Berry Plastics said in the filing. The company has more than 13,000 customers and recorded a net loss of $212 million on pro forma net sales of $4.8 billion for the year ended June 30, according to the filing.

    Another interesting one this week is Fleetmatics (NYSE:FLTX) which set its IPO of 7.8 million shares at a price of between $15 to $17 -based on the midpoint of $16 a share, Fleetmatics on Monday said it could get about $88.5 million from the offering. The company's mobile software platform allows businesses to manage their local fleets of commercial vehicles and improve productivity by providing data on vehicle location, fuel usage, speed and mileage. The company has more than 16,000 customers and more than 281,000 vehicles under subscription. For the six months ended June 30, FleetMatics reported it swung to a net loss of $366,000 as the company recorded an increase in operating expenses and a loss on extinguishment of debt. However, revenue for the period rose 37% to $58.4 million.

    For the week after I am keeping a close eye on Shutterstock (NYSE:SSTK) - a small IPO of around $63million USD - this online commercial photo website I think could drum up some interest. The growing demand for online images gives this a good lead into the market - Private equity firm Carlyle Group LP agreed to acquire Getty Images for $3.3 billion in August. Shutterstock, which delivered more than 58 million paid downloads to about 550,000 active users last year, posted revenue of $120.3 million in 2011, it said in a regulatory filing.

    Upcoming IPO Calendar

    Company Name/Ticker


    Price Range


    Morgan Stanley
    Deutsche Bank

    $9.00 - $11.00
    6.0 mil

    Amira Nature Foods

    UBS Investment Bank
    Deutsche Bank

    $13.00 - $15.00
    9.0 mil

    Berry Plastics Group

    BofA Merrill Lynch

    $16.00 - $18.00
    29.4 mil

    Dave & Busters Entertainment

    Goldman Sachs
    Jefferies & Co.

    $12.00 - $14.00
    7.7 mil

    Fleetmatics Group

    BofA Merrill Lynch

    $15.00 - $17.00
    7.8 mil


    Wells Fargo Securities
    Piper Jaffray

    $11.00 - $13.00
    5.0 mil

    Intercept Pharmaceuticals

    BofA Merrill Lynch
    Needham & Co.

    $13.00 - $15.00
    4.3 mil

    Javelin Mortgage Investment

    Deutsche Bank

    $20.00 - $20.00
    6.3 mil

    KYTHERA Biopharmaceuticals

    J.P. Morgan
    Goldman Sachs

    $14.00 - $16.00
    4.0 mil


    Goldman Sachs
    BofA Merrill Lynch

    $9.50 - $11.50
    15.7 mil

    Luxfer Holdings

    Credit Suisse
    Jefferies & Co.

    $12.00 - $14.00
    8.0 mil

    Realogy Holdings

    Goldman Sachs
    J.P. Morgan

    $23.00 - $27.00
    40.0 mil

    Regulus Therapeutics

    Lazard Capital Markets
    Cowen & Company

    $10.00 - $12.00
    4.5 mil


    Morgan Stanley
    Deutsche Bank

    $13.00 - $15.00
    4.5 mi

    Good luck in all your trading this week

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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