The IPO Buzz: IPO Heat and Light

Rally Software Development (RALY – proposed) is a Boulder, Colorado-based provider of cloud-based solutions for managing agile software development. Underwriters plan to price about 5.8 million shares at $11 to $13 each on Thursday evening. The IPO is expected to start trading on Friday morning on the New York Stock Exchange. All the shares are being offered by the company. Rally Software was formed in 2006. It has about 360 employees.  

Last Trade: Marin Software (MRIN) is a San Francisco-based provider of a cloud-based digital advertising management platform that lets advertisers and agencies improve financial performance. On Jan. 30, underwriters priced 7.5 million shares at $14 each, up from 7 million shares at $11 to $13 each. The IPO opened on Jan. 31 at $19. It closed on Friday, April 5 at $15.12 – UP 8 percent from its IPO price.

 

Taylor Morrison Home (TMHC – proposed) is a Scottsdale, Arizona-based builder of single-family detached and attached homes. It also is a land developer. Taylor Morrison believes it will be the sixth-largest homebuilder in the United States. Underwriters plan to price about 23.8 million Class A common shares at $20 to $22 each on Tuesday evening. The IPO is expected to start trading on Wednesday morning on the New York Stock Exchange. All the shares are being offered by the company. Taylor Morrison, formed in 1936, has about 1,041 employees.  

Last Trade: TRI Pointe Homes (TPH) is an Irvine, California-based builder of single-family homes in planned communities in major metropolitan areas located throughout Southern and Northern California. On Jan. 30, underwriters priced 13.7 million shares at $17 each, up from 11.7 million shares at $14 to $16 each. The IPO opened on Jan. 31 at $19.56. It closed on Friday, April 5, at $19.39 – UP 14.1 percent from its initial offering price.

 

EVERTEC (EVTC – proposed) is a San Juan, Puerto Rico–based full-service transaction-processing company doing business in Latin America and the Caribbean. Underwriters plan to price about 21.1 million shares at $18 to $20 each on Thursday evening. The IPO is expected to trade on Friday morning on the New York Stock Exchange. The company plans to offer 6.6 million shares and selling shareholders plan to sell 14.5 million shares. EVERTEC was formed in 1988. It has about 1,660 employees.   

Last Trade: XOOM (XOOM) is a San Francisco-based online consumer-to-consumer international money-transfer provider. On Feb. 14, which was Valentine’s Day, underwriters priced 6.3 million shares at $16 each, up from 5.8 million shares at $13 to $15 each. The IPO opened on Feb. 15 at $25.49. It closed on Friday, April 5, at $20.82 – UP 30.1 percent from its initial offering price.

 

This brings us to the rest of this week’s IPO calendar.

 

Overall, there are six IPOs expecting to raise about $1.3 billion. Two of the remaining three deals are biopharmaceutical companies: Chimerix (CMRX – proposed) and Omthera Pharmaceuticals (OMTH – proposed).

 

The third company – an oil shipper – could be interesting. Here’s the lowdown.

 

KNOT Offshore Partners LP (KNOP – proposed) is a United Kingdom-based limited partnership formed to own, operate and acquire oil shuttle tankers under long-term charters. Underwriters plan to price 7.45 million Common Units at $19 to $21 each on Tuesday evening. The IPO is expected to start trading on Wednesday morning on the New York Stock Exchange.

 

From its prospectus: “We intend to make minimum quarterly distributions of $0.375 per common unit ($1.50 per unit on an annualized basis).”

 

That amounts to a yield of 7.5 percent, based upon the mid-point of its proposed price range.

 

This brings us to the following week, which will begin on Monday, April 15^th, when most Americans with taxable income will have a date with the IRS. The calendar for the week of April 15^th already has four IPOs expecting to raise about $1.2 billion.

 

The current IPO traffic – 10 deals expecting to raise $2.4 billion over this week and next – is not too shabby, considering that this time last week, the calendar was “clean and green.”

Stay tuned.