If you think 12 IPOs on this week’s calendar is awesome, look in the rear-view mirror. Look past the Internet bubble of 1999/2000 all the way back to 1996. That was the busiest year for IPOs, when a record number of 874 were priced, according to the U.S. Securities and Exchange Commission filings. And 109 came in October of that year.
Unlike today, there was no talk of an “IPO bubble” 15 years ago.
Nevertheless, the fact that this week’s IPO calendar totals 12 IPOs has attracted attention. The dozen deals are expected to raise almost $2 billion.
But there is more to this week’s story than those numbers. There are a few headliners on the marquee.
Dunkin’ Brands Group (NASDAQ:DNKN), based in Canton, Massachusetts, operates franchise restaurants under its Dunkin’ Donuts and Baskin-Robbins brands at over 16,000 points of distribution in 57 countries. The company was founded in 1950 and has about 1,075 employees. Dunkin’ Brands reported a net loss of $1.7 million on revenues of $139.2 million for the three months ended March 31, 2011, compared with net income of $5.9 million on revenues of $127.4 million for the same period a year ago.
Bankers plan to offer 22.5 million shares at $16 to $18 each to raise about $382.5 million.
The IPO is expected to be priced on Tuesday evening, July 26, and to trade Wednesday morning on the Nasdaq Global Market under the proposed symbol “DNKN.” Joint-lead managers are JP Morgan (NYSE:JPM), Barclays Capital (NYSE:BCS), Morgan Stanley (NYSE:MS), BofA Merrill Lynch (NYSE:BAC) and Goldman Sachs (NYSE:GS).
Note: The principal owners are Bain Capital, Carlyle Partners and Thomas H. Lee Equity Fund V. Each will own about 26.1% of the outstanding shares after the offering.
But the fast money is on a couple of other deals, according to the IPO handicappers.
On the “Most Wanted” List
This week’s “Most Wanted” list consists of a pair of deals. The common thread is that each company is linked in a way to a hot commodity: One sells tea and the other provides equipment and services to the oil industry.
Teavana Holdings (TEA), based in Atlanta, is a specialty retailer offering more than 100 varieties of premium loose-leaf teas, tea wares such as handcrafted cast-iron, clay and ceramic teapots, and other tea-related merchandise through 146 company-owned stores in 34 states and 15 franchise stores in Mexico. Founded in 1997, the company has about 1,075 employees.
Teavana reported net income of $3.3 million on revenues of $34.5 million for the three months ended May 1, 2011, compared with net income of $1.9 million on revenues of $25.8 million for the same period a year ago.
Bankers plan to offer 7.14 million shares at $13 to $15 each to raise about $100 million.
The IPO is expected to be priced on Wednesday evening, July 27, and to trade on Thursday morning on the Nasdaq Global Market under the proposed symbol “TEA.” Joint-lead managers are BofA Merrill Lynch and Goldman Sachs.
The company plans to offer 1.07 million shares and selling shareholders plan to offer 6.07 million shares.
There’s some buzz out there that people are looking at Green Mountain Coffee Roasters (GMCR) as a comparison. Green Mountain produces and sells more than 200 varieties of coffee, cocoa, teas and other beverages. Its stock closed on Friday, July 22, at $92.71, up 215.9% from $29.35 on July 23, 2011.
C&J Energy Services (CJES), based in Houston, is provider of premium hydraulic fracturing and coiled tubing services in Texas, Louisiana and Oklahoma. Founded in 2006, the company has about 720 employees.
C&J Energy reported net income of $29.1 million on revenues of $127.2 million for the three months ended March 31, 2011, compared with net income of $2.2 million on revenues of $32.6 million for the same period a year ago.
Bankers plan to offer 11.5 million shares at $25 to $28 each to raise about $341 million.
The IPO is expected to be priced on Thursday evening, July 28, and trade on Friday morning on the New York Stock Exchange under the proposed symbol “CJES.” Joint-lead managers are: Goldman Sachs, J.P. Morgan and Citi (NYSE:C).
The company plans to offer 4.75 million shares and selling shareholders plan to offer 6.75 million shares.
The Dow Jones U.S. Oil Equipment and Services Index has greatly outperformed the underlying stock market. On Friday, July 22, 2011, the index closed at 733.91, up 61.8% from 453.58 a year ago on July 23, 2010. On Friday, the S&P 500 Index closed at 1,345.02, up 22% from 1,102.66 a year ago on July 23, 2010.
As for next week, the IPO traffic just keeps coming. Stay tuned.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do they trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.