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Global IPO Market This Week

|Includes:Amira Nature Foods (ANFI), BERY, FLTX, JMI, KYTH, LOCK, LXFR, RGLS, SSTK, WDAY

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