Like last week, there are 4 IPO’s expected for the week of 7/19/10, Camelot Information Systems (NYSE:CIS), Ameresco, Inc. (NYSE:AMRC), Green Dot Corp (NYSE:GDOT), and SurgiVision, Inc. (SRGV).
Camelot Information Systems (CIS) is offering 13.33M common shares in their IPO at $11.00-$13.00, representing a mid point market cap of $526M (expected to price Tuesday for Wednesday trade). Camelot is a leading domestic IT service provider in China. They focus on 2 business lines: Enterprise application software (EAS) and Financial industry IT services (NYSE:FIS). They are the leader in China’s EAS market with the largest pool of SAP consultants and a 12% market share. Their FIS business includes many of the largest financial institutions in China, including the Peoples Bank, all 5 of the state owned commercial banks, 2 of 3 policy banks, all 12 national commercial banks, and 33 of 37 commercial banks in Taiwan. There is some customer concentration with IBM representing approximately 32% of revenue, and their top ten customers representing approximately 63% of revenue in ’09. The company has grown revenue at a 50% CAGR from ’05 to ’09 to $118M. They are profitable and had a net margin of 15.6% in ’09. Chinese IPOs have been spotty in 2010, with only 4 of 11 closing in positive territory on day one, and 5 currently above their IPO price. This company, however, has a shot based on the industry and forward P/E discount to Chinese peers VIT and LFT. The company, based in Beijing, China, is. Lead Underwriters include Goldman Sachs and Barclays.
Ameresco, Inc. (AMRC) is offering 8.7M common shares in their IPO at $14.00-$16.00, representing a mid point market cap of $606M (expected to price Wednesday for Thursday trade). The company, based in Framingham, MA, is a leading pure play energy efficiency and solutions company in North America. Energy efficiency makes up 80% of their revenue, and consists of the development, installation and arrangement of financing for energy efficiency projects. Renewable energy projects make up the other 20% of their revenue. They have 54 offices in 29 states and 4 provinces, and over 2000 customers served. Energy efficiency is the least costly supply option and has the most effective environmental impact versus other options such as solar PV, solar thermal, wind, natural gas, and etc. The energy efficiency industry is expected to grow 26% annually from ’08 to ’11. The company has experienced organic revenue CAGR of 40% from ’01 to ’09, with $428.5M in revenue for ’09, and they have been consistently profitable over the last 9 years. Lead Underwriters include BofA Merrill Lynch and RBC Capital.
Green Dot Corp (GDOT) is offering 3.85M shares in their IPO at $32.00-$35.00, representing a $1.35B market capitalization at the mid point (expected to price Wednesday for Thursday trade). The company, headquartered in Monrovia, CA, is the pioneer in general purpose reloadable prepaid debit cards (GPR cards). They are currently the largest in the U.S. with over 3.4M active cards and distribution through over 50,000 retail outlets including: Wal-Mart, Walgreens, CVS, Rite Aid, 7-Eleven, Kroger, K-Mart, Meijer and Radio Shack. According to Mercator Advisory Group’s “Prepaid Market Forecast 2009 to 2012” research report, $8.7 billion was loaded onto GPR cards in the United States in 2008 and $118.5 billion is expected to be loaded onto GPR cards in the United States in 2012.Revenue has grown at a 51% CAGR from ’06 to ’09 from $74.7M to $258.5M. EBITDA over the same period has grown at a 116% CAGR from $8.2M to $82.8M.Wal-Mart is their largest customer, representing 63% of revenue in 1Q10. They have been an exclusive partner with Wal-Mart since 2007, when Wal-Mart introduced their Wal-Mart MoneyCard program. They recently extended their contract with Wal-Mart which under the new terms will increase their sales commission to Wal-Mart to 22% from a previous 5% to 7.9%. However, based on growth in sales volume they see the decline in EBITDA margin only going to the mid 20% range versus 32% for ’09. This market is fast growing and highly competitive (comp NetSpend just filed their $200M IPO on July 15), but based on the fast growth and current market leading position, as well as small offering size, this offering should see considerable interest. Lead Underwriters include JPMorgan and Morgan Stanley.
SurgiVision, Inc. (SRGV) is offering 2.5M shares in their IPO at $13.00-$15.00, representing a $142M market cap at the mid point (expected to price the week of July 19). Based in Memphis, TN, they are a medical device company that provides real-time MRI guided therapy platforms which enable minimally invasive procedures in standard existing MRI suites. Their ClearPoint system became FDA approved on 6/16/10 for general neurological interventional procedures. The system is based on a razor/razorblade model in which the company charges no up front capital to the hospital for the hardware (costing approximately $150k), but rather utilizes a pay per procedure approach. Then they charge for the disposables (which run approximately $7k per case). Their initial target market is a subset of the total neurological interventions (estimated to be approx 130k procedures per year in the U.S.). SurgiVision has two additional products in their pipeline: ClearTrace and SafeLead Technologies. ClearTrace focuses on applying MRI guided technology to cardiac procedures. With ClearTrace they have a mutually exclusive co-development partnership w/ Seimens Healthcare, and are targeting a European market intro in the 2nd half of 2012. SafeLead Technology focuses on improving the MRI safety profile of implantable leads. This product is under co-development w/ Boston Scientific. SurgiVision has received a $13M upfront payment in this product, with potential milestones of an additional $21.6M. They also have a potential per unit royalty for all leads incorporating the SafeLead technology. The company is currently operating at a loss, and they have cash burn of approximately $950k per month. Prior to the offering they have approx $3.5M in cash, and anticipate using the proceeds for sales & marketing, research & development and working capital purposes. Lead Underwriters include Goldman Sachs and Barclays. Lead Underwriters include Canaccord Genuity and Rodman & Renshaw.
Disclosure: No Positions