The IPO Buzz: An IPO Indian Summer

Four new names popped through the SEC’s filing window last week and were added to the IPO pipeline, while seven more companies announced expected pricing terms and eight IPOs landed on the calendar. Not bad for a four-day work week.

 

This brings us to this week. The calendar lists two companies. One is an IPO. The other was originally tagged as such, but it’s now classified as a secondary public offering. Let’s take a closer look at each.

 

OCI Resources LP (OCIR – proposed) is an Atlanta-based limited partnership that was recently formed to operate the trona ore mining and soda ash production business of OCI Wyoming. OCI Wyoming is believed to be one of the largest and lowest-cost producers of soda ash in the world. OCI Resources reports its facility has been in operation for more than 50 years. For the 12-month period ended June 30, 2013, OCI reported net income of $25.9 million on revenues of $446.3 million.

 

Underwriters plan to offer 5 million common units of OCI Resources at $19 to $21 each to raise about $100 million. The IPO is expected to be priced on Thursday evening and trade on Friday morning on the New York Stock Exchange. The joint-lead managers are: Citigroup and Goldman Sachs. The co-managers are: Barclays and Credit Suisse.

 

Note (from its prospectus): “Upon the closing of this offering, our partnership agreement will provide for a minimum quarterly distribution of $0.5000 per unit for each complete quarter, or $2.00 per unit on an annualized basis (a 10 percent yield at the mid-point of its price range). Our ability to make cash distributions at the minimum quarterly distribution rate will be subject to the factors described above under “—General—Limitations on Cash Distributions and Our Ability to Change Our Cash Distribution Policy.”

 

InterCloud Systems (ICLD) is a Red Bank, New Jersey-based global single-source provider of value-added services for both corporate enterprises and service providers. The company offers cloud and managed services, professional consulting services and voice, data and optical solutions. For the 12-month period ended June 30, 2013, InterCloud reported a net loss of $3.6 million on revenues of $41.1 million. Founded in 1999, the company has about 449 employees.

 

Underwriters plan to offer $20 million worth of InterCloud at $9 to $11 per share. The number of shares has yet to be determined. The IPO is expected to be priced on Tuesday evening and trade on Wednesday morning on the NASDAQ Global Market. The lead manager is: Aegis Capital Corp. The co-manager is: Northland Capital Markets.

 

Note:

On Dec. 5, 2012, Genesis Group Holdings filed for an offering to raise $40 million and stated:

“This is InterCloud Systems, Inc.’s initial public offering. We are selling shares of our common stock.

“Our common stock is currently traded over-the-counter on the OTC Bulletin Board under the symbol “GGHO”.  On November 26, 2012, the last reported sale price of our common stock was $0.026 per share.  We intend to apply to list our common stock on the NYSE MKT LLC (NYSE MKT) or the NASDAQ Capital Market (NASDAQ) under the symbol “ICLD”.

 

On Aug. 19, 2013, the most recent prospectus stated:

“We are offering $20,000,000 of shares of our common stock. Our common stock is currently quoted on the OTCQB Marketplace operated by the OTC Markets Group, Inc., or OTCQB, under the symbol “ICLD”. On August 16, 2013, the last reported sale price of our common stock on the OTCQB was $10.00 per share.  We anticipate that the offering price of our common stock will be between $9.00 and $11.00 per share.”

 

No mention of an initial public offering.

 

As we have seen many times in today’s IPO market, the calendar can fill up quickly. Last week had one deal. This week has nine IPOs with various pricing dates.

 

Stay tuned.