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IPO Candygram for June 15th, 2010

|Includes: BSFT, CBOE Holdings (CBOE), VLTC

We published the Candygram for June 15, 2010 just after one of the most likely deals to price, CBOE, went out last night at the high end of the range. It’s the first deal to get priced in the month of June.

As we noted in our analysis of CBOE this is by far the lowest risk deal on the calendar given the company fundamentals, management team, dividend, etc. The success of the deal is another indication that at least some appetite for risk is back in the markets.

Our current Candygram goes into a few more details about the market and contains our IPO Ecosystem overview.

Several offerings are still waiting in the wings to see if the market provides a big enough window in which to build an adequate book:

  • Motricity – Mobile Data Infrastructure for Carriers is being led by JP Morgan and a large cast of co-managers.
  • Broadsoft – Software Infrastructure for IP Networks is a Goldman deal.
  • CBOE – Chicago Board Options Exchange is being led by Goldman as well but is basically a “Street” deal with 18 bankers and co-managers.
  • Higher One Holdings – Technology and payment services for higher education. Another Goldman-led deal.

Although less clear, there is talk of Fabrinet, Vringo and China Intelligent Lighting finding homes with investors but this seems unlikely to us. We completed an initial analysis and valuation for CBOE which is a very solid, if fully-valued deal.

The deals priced in May have done little given the market volatility but Accretive Health, ReachLocal and TeleNav have stayed in positive territory.

There are not many 180-day lockups scheduled to come off in the next two months but we do note that Kraton Performance Polymers is basically off now and QuinStreet, for which we published a company research report, comes off August 10th, 2010. Kraton has performed very well and is up 54% since their offering. It’s possible that the shares could see some supply-driven pressure, but the company has recently announced price increases for their products, possibly indicating that there may be enough demand to absorb the new shares if they reach the market.

We were pleased to see Zip Car file for their IPO (to be led by Goldman) and it joins a fairly lost list of companies in the pipeline for us to follow into the market this year. (See our attached IPO Candy Ecosystem for the complete list.)

Our list now has 41 companies that have filed for an IPO and we know there are dozens more that are prepared to file if market conditions and their business momentum allows.

We are continuing to upload archived roadshows and research reports while we expand and deepen the data behind the IPO Candy Ecosystem.



Disclosure: No positions in any of the stocks mentioned.