The IPO Buzz: IPO Weather Eye on Washington

Once again, the Federal Reserve demonstrated it writes the script for Wall Street. On Wednesday, June 19, Chairman Ben Bernanke spoke and the stock market tanked. The Dow Jones Industrial Average registered a two-day spill, falling nearly 560 points, or 3.7 percent, before leveling off by Friday’s close. And we still have the aftershocks to watch for this week.

 

In the background sits this week’s IPO calendar. It lists 11 deals. Bankers expect to raise about $2.5 billion. Last week, not everything got out the door. And what of the deals that did get done? The results were mixed. The IPO handicappers see more of the same for this week.

 

Looking back at last week, the IPO calendar priced four deals, pushed two into this week, and another was postponed “due to market conditions.” But it didn’t end there. Two of the four IPOs that came to market finished the week in the winner’s circle. The other two did not. (See: “Last Week’s Traffic.”) This brings us to this week.

 

The IPO professionals don’t expect any opening-day moonshots from this week’s calendar. This is due to “market conditions.” Nevertheless, there still could be some gold to be gleaned from this week’s offerings that run the gamut from technology to tools. The following  are on somebody’s “most wanted” list in alphabetical order:

 

CDW Corporation (CDW – proposed) is a Vernon Hills, Illinois-based company that offers about 100,000 integrated IT products to more than 250,000 businesses, government agencies, educational institutions and healthcare providers. For the 12-month period ended March 31, 2013, CDW reported net income of $136.4 million on revenues of $10.2 billion. Founded in 1984, the company has about 4,300 employees.

 

Underwriters plan to offer 27.9 million shares of CDW at $20 to $23 each to raise about $600 million. CDW plans to sell 23.25 million shares and selling shareholders plan to sell 4.65 million shares in this offering. The IPO is expected to be priced Wednesday evening and trade Thursday morning on the NASDAQ Global Market. The joint-lead managers are: J.P. Morgan, Barclays and Goldman Sachs. The co-managers are: Deutsche Bank Securities, Morgan Stanley, Baird, BofA Merrill Lynch, Raymond James, William Blair, Needham, Stifel, Loop Capital Markets and The Williams Capital Group.

 

 

HD Supply Holdings (HDS – proposed) is an Atlanta-based industrial distributor of building materials and tools. It provides installation services to the construction, maintenance and repair, energy and infrastructure industries. For the 12-month period ended May 5, 2013, HD Supply reported a net loss of $950 million on revenues of $8.3 billion. Founded in 1997, the company has about 15,000 employees.

 

Underwriters plan to offer 53.2 million shares of HD Supply at $22 to $25 each to raise about $1.25 billion. HD Supply plans to sell all the shares in this offering. The IPO is expected to be priced Wednesday evening and trade Thursday morning on the NASDAQ Global Market. The joint-lead managers are: BofA Merrill Lynch, Barclays, J.P. Morgan and Credit Suisse. The co-managers are: Citigroup, Deutsche Bank Securities, Goldman Sachs, Morgan Stanley, UBS Investment Bank, Wells Fargo Securities, Baird, William Blair, Raymond James, BB&T Capital Markets, SunTrust Robinson Humphrey, Drexel Hamilton and Guzman & Company.

 

 

Luxoft Holdings (LXFT – proposed) is a British Virgin Islands-registered provider of software development services and innovative IT solutions for automotive and transport, energy, financial services, travel and aviation, technology and telecom multinational companies. For the year ended March 31, 2013, Luxoft reported net income of $36 million on revenues of $314.6 million. Founded in 2000, the company has about 5,846 employees.

 

Underwriters plan to offer about 4.1 million shares of Luxoft at $16 to $18 each to raise about $70 million. Luxoft plans to sell about 2.05 million shares and selling shareholders plan to sell about 2.05 million shares in this offering. The IPO is expected to be priced Tuesday evening and trade Wednesday morning on the New York Stock Exchange. The joint-lead managers are: UBS Investment Bank, Credit Suisse and J.P. Morgan. The co-managers are: VTB Capital and Cowen.

 

 

NanoString Technologies (NSTG – proposed) is a Seattle-based provider of life science tools used for translational research and a developer of molecular diagnostics using novel digital molecular barcoding technology. For the 12-month period ended March 31, 2013, NanoString reported a net loss of $21.4 million on revenues of $24.7 million. Founded in 2003, the company has about 138 employees.

 

Underwriters plan to offer about 5.4 million shares of NanoString at $13 to $15 each to raise about $76 million. NanoString plans to sell all shares in this offering. The IPO is expected to be priced Tuesday evening and trade Wednesday morning on the NASDAQ Global Market. The joint-lead managers are: J.P. Morgan and Morgan Stanley. The co-managers are: Leerink Swann and Baird.

 

 

Noodles & Company (NDLS – proposed) is a Broomfield, Colorado-based operator of a chain of 343 casual restaurants located in 25 states offering menus ranging from American to Asian to Mediterranean food. For the 12-month period ended April 2, 2013, Noodles reported a net income of $4.8 million on revenues of $311.8 million. Founded in 1995, the company has about 7,000 employees.

 

Underwriters plan to offer about 5.4 million shares of Class A common stock of Noodles at $13 to $15 each to raise about $75 million. Noodles plans to sell all shares in this offering. The IPO is expected to be priced Thursday evening and trade Friday morning on the NASDAQ Global Market. The joint-lead managers are: Morgan Stanley and UBS Securities. The co-managers are: BofA Merrill Lynch, Jefferies, Baird and Piper Jaffray.

 

 

Prosensa Holdings (RNA – proposed) is a Netherlands-based biotechnology company engaged in the discovery and development of ribonucleic acid-modulating, or RNA-modulating, therapeutics for the treatment of genetic disorders with a collaboration agreement with GlaxoSmithKline. For the 12 months ended March 31, 2013, Prosensa reported a net loss of US$10.9 million on revenues of US$10.9 million. Founded in 2002, the company has about 85 employees.

 

Underwriters plans to offer about 5 million shares of Prosensa at $11 to $13 each to raise about $60 million. Prosensa plans to sell all shares in this offering. The IPO is expected to be priced Thursday evening and trade Friday morning on the NASDAQ Global Market. The joint-lead managers are: J.P. Morgan and Citigroup. The co-managers are: Leerink Swann, Wedbush PacGrow Life Sciences, KBC Securities and Trout Capital.

 

Tremor Video (TRMR – proposed) is a New York City-based provider of technology-driven video advertising solutions that let advertisers reach consumers on Internet-connected devices, including computers, smartphones, tablets and connected TVs. For the 12-month period ended March 31, 2013, Tremor reported a net loss of $12.7 million on revenues of $112.7 million. Founded in 2005, the company has about 249 employees.

 

Underwriters plan to offer about 7.5 million shares of Tremor at $11 to $13 each to raise about $90 million. Tremor plans to sell all shares in this offering. The IPO is expected to be priced Wednesday evening and trade Thursday morning on the New York Stock Exchange. The joint-lead managers are: Credit Suisse and Jefferies. The co-managers are: Canaccord Genuity and Oppenheimer.

 

At press time, there were no IPOs on the calendar for the week of July 1. It is the traditional July 4^th holiday break.

 

Stay tuned.