Seeking Alpha

IPOKAS's  Instablog

IPOKAS
Send Message
  • Global IPO Market This Week  0 comments
    Oct 7, 2012 10:52 AM | about stocks: ANFI, KYTH, SSTK, WDAY, JMI, LOCK, LXFR, BERY, RGLS, FLTX

    Astro how many times over? Fleetmatics flys, Dave and Buster busts can Hong Kong wake up and bring on the biggest week since facebook!!

    hello all, hope you all had a good week

    US IPO Returns Year to date +23% US Average First Day Pop is 13%VS S&P 18.16%

    There have been 150 IPOs priced globally YTD, a -46.6% change from last year.

    Total proceeds raised in USD were $74.6 bn globally YTD, a -37.2% change from last year.

    Well lets start with what I have been harping on about for the last couple of months - ASTRO Malaysia - books closed on Wednesday with some staggering numbers for such a large Malaysian deal.

    The stock priced at the top of the range RM3 with the institutional tranche being over 30x oversubscribed and the retail tranche was over 6x. There was strong demand from international LOs, hedge funds, and domestic accounts with over 350 lines in the book. Allocations were heavily skewed towards international LOs followed by domestic accounts with whom management/selling shareholders had pre-existing relationships, leading to over 70 accounts or over 80% of allocations being company directed. The deal looks to open on the 19th of October and am sure this is going to show some strong opening day gains with such pent up demand on the order book and with some many accounts not getting anything near what they wanted in allocation.

    Before we look at next weeks IPO's lets look at this weeks US returns - Fleetmatics was by far the top performer + 31.18% last week with Luxfer holdings not doing to badly, and one deal (Dave & Buster's Entertainment) was pulled.

     

     

    Company

    Symbol

    Industry

    Offer Date

    Shares (millions)

    Offer Price

    1st Day Close

    1st Day Return

    Current Price

    Return

    JAVELIN Mortgage Investment

    JMI

    Financials

    10/3/2012

    7.3

    $ 20.00

    $ 19.60

    2.00%

    $ 19.75

    -1.25%

    LifeLock

    LOCK

    Technology

    10/3/2012

    15.7

    $ 9.00

    $ 8.36

    7.11%

    $ 7.32

    -18.67%

    Luxfer Holdings PLC

    LXFR

    Basic Materials

    10/3/2012

    8

    $ 10.00

    $ 11.06

    10.60%

    $ 11.02

    10.20%

    Berry Plastics Group

    BERY

    Basic Materials

    10/4/2012

    29.4

    $ 16.00

    $ 15.20

    -5.00%

    $ 15.00

    -6.25%

    Regulus Therapeutics

    RGLS

    Health Care

    10/4/2012

    11.3

    $ 4.00

    $ 4.20

    5.00%

    $ 4.20

    5.00%

    FleetMatics Group plc

    FLTX

    Technology

    10/5/2012

    7.8

    $ 17.00

    $ 22.30

    31.18%

    $ 22.30

    31.18%

    This week as mentioned earlier is the biggest week this year in terms of US IPO's since Facebook - with around USD $3.5bn coming to market if they all come.

    Amira Nature Foods is one I am watching carefully - not because I think its going to do particularly well but it's a UAE, Dubai based company listing in the Nasdaq - it will be very interesting to see if there was any interest in this deal - I will report back on that one as soon as I find out more information on the books.

    I pointed out Shutterstock last week - its small deal size of USD $63m in the technology sector could see this one do well - but getting stock I am sure will be very difficult.

    Also keep any eye on workday which lists on Friday. The human resources software-as-a-service company is being billed as one of the hottest tech deals of the year. Workday, headed by PeopleSoft veterans David Duffield and Aneel Bhusri and backed by New Enterprise Associates and Amazon.com founder Jeff Bezos. The offering assigns the company an aggressive market value of US$3.85bn or about 14 times annualized run rate of revenues of US$239m this year (after adjusting for Workday's net cash post-IPO). The company is growing rapidly at the top-line, reporting increasing revenues by 118%, $119.52 million, up from $54.82 million in the latest six-month period. The company lost $47.3 million in the six month span, compared with a loss of $36.3 million a year earlier. Importantly No insiders are selling in the offering. If this was not a tech stock with the increasing loss's most would stay away even with the large increase in revenue. But my guess is this will do well in the market.

    I would like to use highlight a deal coming out of Hong Kong which this year has been like a graveyard. Why is this so important - we need a deal in HK that can open up the market again - so much demand pent up there and as I mentioned I have on my desk a copy of around 500+ asian companies looking for HK listings when the time is right.

    Shanghai Fosun Pharmaceutical (Group) Co., a unit of conglomerate Fosun International Ltd. (0656.HK), plans to launch a Hong Kong IPO on 11th Oct to raise around US$600 million, with a listing on the 25th Oct. -c.48% of total estimated net proceed on acquisition and consolidation in the areas of pharmaceutical manufacturing, pharmaceutical distribution and retail, healthcare services and diagnostic products and medical devices;
    - c.19% of total estimated net proceed on funding for existing research and development projects, expansion of the research and development team and acquisition of new research and development projects;
    - c.23% of total estimated net proceed on repayment of a portion of principal and interest of interest-bearing liabilities; and
    - c.10% of total estimated net proceed on supplementing general working capital

     

     

    Company

    Symbol proposed

    Shares (millions)

    Price Low

    Price High

    Est $ Volume

    Expected to Trade

    GlobeImmune

    GBIM

    5

    11

    13

    $ 60.0 mil

     
     

    Ambarella

    AMBA

    6

    9

    11

    $ 60.0 mil

     

    Wednesday

    Amira Nature Foods Ltd.

    ANFI

    9

    13

    15

    $ 126.0 mil

     

    Wednesday

    Garrison Capital

    GARS

    5

    15

    17

    $ 80.0 mil

     

    Thursday

    Intercept Pharmaceuticals

    ICPT

    4.3

    13

    15

    $ 60.2 mil

     

    Thursday

    KYTHERA Biopharmaceuticals

    KYTH

    4

    14

    16

    $ 60.0 mil

     

    Thursday

    Realogy Holdings

    RLGY

    40

    23

    27

    $ 1,000.0 mil

     

    Thursday

    Shutterstock

    SSTK

    4.5

    13

    15

    $ 63.0 mil

     

    Thursday

    Diamondback Energy

    FANG

    12.5

    17

    19

    $ 225.0 mil

     

    Friday

    Linn Co LLC

    LNCO

    30.3

    41.24

    41.24

    $ 1,247.5 mil

     

    Friday

    Workday

    WDAY

    22.8

    21

    24

    $ 511.9 mil

     

    Friday

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

    Stocks: ANFI, KYTH, SSTK, WDAY, JMI, LOCK, LXFR, BERY, RGLS, FLTX
Back To IPOKAS's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.