The IPO Buzz: A Popular Station

Bankers plan to deliver five deals during July’s final week and price seven for August’s first week.

 

It’s not quite Grand Central Station, but it’s a big improvement over a year ago

 

If everything makes it out the door, that’ll raise July’s total to 13 IPOs. This time last year – July 2009 – saw only two deals get off the IPO train, according to the U.S. Securities and Exchange Commission’s filings.

 

And in the background, the August IPO calendar is quickly coming to life. This time last week, the IPO calendar had nothing for August’s first week. Now it shows seven deals on tap for the week of Aug. 2, 2010. This time last year – August 2009 – saw only five passengers get off the IPO train.

 

Nevertheless, the IPO players are not looking for much of a pop from the current offerings.

 

One is a carry-over from last week, one is making a return to the calendar, two are drawing yawns from the IPO players and one is drawing some interest.

 

SurgiVision (SRGV – proposed), based in Memphis, is a provider of an MRI-guided device for minimally invasive procedures on the brain or the heart.

 

Trius Therapeutics (TSRX – proposed), based in San Diego, is a biopharmaceutical company focused on the commercialization of innovative antibiotics to treat serious infections. The deal was postponed during the week of March 3, 2010.

 

Molycorp (MCP – proposed), based in Greenwood Village, Colorado, is the only rare earth oxide producer in the Western Hemisphere. Note: The company reported an accumulated deficit of $50.4 million as of March 31, 2010.

 

Chesapeake Midstream Partners (CHKM – proposed), based in Oklahoma City, is a limited partnership formed by Chesapeake and GIP to own, operate, develop and acquire natural gas gathering systems and other midstream energy assets. The partnership plans to establish a cash quarterly distribution of $0.3375 per unit — or $1.35 per unit per year, which would yield 6.75 percent.

 

Envestnet (ENV – proposed), based in Chicago, is a provider of Web-based investment solutions and services to about 8,500 financial advisors with about 185,000 investors. The financial advisors are independent or are associated with small or mid-sized financial advisory firms and larger financial institutions.

 

The company had a good first quarter.

 

For the three months ending March 31, 2010, Envestnet reported net income of $306,000 on revenues of $21.6 million, compared with a net loss of $2.7 million on revenues of $18.7 million for the same period a year ago.

 

Envestnet is not the first financial services provider to go public this year. That distinction belongs to:

 

Financial Engines (FNGN), based in Palo Alto, California, is a provider of technology portfolio management services, investment advice and retirement assistance to participants in employer-sponsored defined contribution retirement plans. Financial Engines priced its IPO of 10.6 million shares at $12 on March 15. The IPO traded as high as $18.96 on May 23. It closed on Friday, July 23, at $14.75, UP 22.9 percent from its initial offering price.

 

However Google Finance’s Investment Services Index has been an underperformer this year. On Friday, the index was DOWN 7.75 percent for the year versus a decline of 1.2 percent in the S&P 500 Index.

 

Back to Envestnet: The company plans to price 7 million shares at $12 to $14 each to raise about $100 million. Envestnet plans to offer 3.875 million shares and selling shareholders plan to offer 3.875 million shares. The IPO is expected to start trading on Thursday, July 28, 2010.