The IPO Buzz: Sizzlin’ Summer

On Friday, July 26, 2013, the IPO calendar for the week of Aug. 5 listed just one deal. It was expected to raise $65 million.

 

Fast forward five business days later: On Friday, Aug. 2, the IPO calendar for the week of Aug. 5 now listed 12 deals. They were expected to raise $2 billion.

 

The reason today’s IPO traffic has become a stealth market is the JOBS Act of 2012. Under the new guidelines, the calendar can explode in a matter of days. Before the JOBS Act, it could take weeks and months for an IPO to appear on the calendar.

 

But there’s more to this week than meets the eye. The opening-day price action could be interesting.

 

Last week’s calendar produced six IPOs. Their opening-day scorecard read: Four up, two down and the average gain for the six was 36.48 percent. This is far better than 2013’s average opening-day performances.

 

From January through July 2013, the calendar produced 115 IPOs, according to U.S. Securities and Exchange Commission filings. Their opening-day scorecard read: 72 up, 33 down, 10 unchanged and the average gain for the 115 was 13.46 percent.

 

Of this week’s dozen deals, there are five IPOs on somebody’s “most wanted list,” according to reliable sources. They are (alphabetically):

 

Cvent (CVT – proposed) is a McLean, Virginia-based provider of cloud-based enterprise event-management platform solutions. They are used by event and meeting planners and for hotels and venues. For the 12-month period ending March 31, 2013, Cvent reported net income of $3.7 million on revenues of $89.6 million. Founded in 1999, the company has about 1,300 employees.

 

Underwriters plan to offer 5.6 million shares of Cvent at $17 to $19 each to raise about $100.8 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: Morgan Stanley and Goldman, Sachs. The co-managers are: Stifel, Pacific Crest Securities and Needham.

 

 

Fox Factory Holding (FOXF  – proposed) is a Scotts Valley, California-based designer of high-performance suspension products. The products are used primarily on mountain bikes, side-by-side vehicles, on-road vehicles with off-road capabilities, off-road vehicles and trucks, all-terrain vehicles, snowmobiles, specialty vehicles and applications, and motorcycles. For the 12-month period ending March 31, 2013, Fox Factory reported net income of $15.1 million on revenues of $245.1 million. Founded in 1975, the company has about 545 employees.

 

Underwriters plan to offer 8.57 million shares of Fox Factory at $13 to $15 each to raise about $120 million. The company plans to sell about 2.86 million shares in the offering and selling shareholders plan to sell another 5.71 million shares. The IPO is expected to be priced on Wednesday evening and trade on Thursday morning on the Nasdaq Global Select Market. The joint-lead managers are: Baird, William Blair and Piper Jaffray. The co-managers are: Stifel, SunTrust Robinson Humphrey, BB&T Capital Markets and CJS Securities.

 

 

Frank’s International N.V. ( FI– proposed) is an Amsterdam-based 75-year-old provider of highly engineered tubular services to the oil and gas industry. For the 12-month period ending March 31, 2013, Frank’s International reported net income of $341.7 million on revenues of $1.05 billion. Founded in 1938, the company has about 4,100 employees.

 

Underwriters plan to offer 30 million shares of Franks International at $19 to $21 each to raise about $600 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: Barclays, Credit Suisse and Simmons & Company. The co-managers are: Citigroup, Morgan Stanley, Goldman Sachs, UBS Investment Bank, Capital One Southcoast, Tudor Pickering Holt, Global Hunter Securities, Johnson Rice, FBR and Scotiabank Howard Weil.

 

 

Underwriters plan to offer 8.3 million shares of Intrexon at $14 to $16 each to raise about $120 million. The company’s chairman and CEO indicated plans to buy up to $30 million of stock in the offering. 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: J.P. Morgan and Barclays. The co-managers are: Griffin Securities and Mizuho Securities.

 

 

Stock Building Supply Holdings (STCK – proposed) is a Raleigh, North Carolina-based distributor of lumber and lumber sheet goods, millwork, doors, flooring, windows, structural components, trusses, wall panels and other exterior products to new construction and repair and remodel contractors. For the 12-month period ending March 31, 2013, Stock Building Supply reported a net loss of $10.3 million on revenues of $1 billion. Founded in 1922, the company has about 2,557 employees.

 

Underwriters plan to offer 8.8 million shares of Stock Building Supply at $16 to $18 each to raise about $150 million. The company plans to sell 4.4 million shares and selling shareholders plan to sell 4.4 million shares in the offering. The IPO is expected to be priced on Thursday evening and trade on Friday morning on the NASDAQ Stock Market. The joint-lead managers are: Goldman Sachs, Barclays and Citigroup. The co-managers are: Baird, Stephens and Wells Fargo Securities.

 

 

This brings us to next week. At press time, there was one IPO on the calendar for the week of Aug. 12. It is expected to raise about $752 million. As we have seen many times in today’s IPO market, the calendar can fill up quickly.

 

Stay tuned.