The first question is: How many shares will be offered? And at what price range? Next up: When will the deal be priced?
Given the way the JOBS Act works, those facts will be made public sooner rather than later. In recent IPO offerings, it takes a couple of weeks between the time a company files its S-1 papers (registering for an initial public offering), files its S-1/A papers (amendments) and lands on the IPO calendar with a pricing date.
Should the Twitter IPO follow the route of others, it could be a done deal by the time Halloween rolls around.
Seven on Tap
But first things first: We have this week’s IPO bonanza to deal with.
From all reports, this week’s IPO action could get interesting. The calendar boasts seven deals. They are expected to raise about $2.3 billion. That’s not bad traffic. Consider if one were to annualize this week’s volume (based on a 50-week year), it would work out to 350 IPOs raising $115 billion. Not a record year, but a throwback to the good old days of the 1990s.
Energy, Drugs and Electronic Dance Music
There are four deals on this week’s calendar that are reportedly on some or a lot of people’s “most wanted” lists: Antero Resources (AR – proposed), MacroGenics (MGNX – proposed), SFX Entertainment (SFXE – proposed) and Western Refining Logistics, LP (WNRL – proposed).
Antero Resources is a Denver-based independent natural gas and oil company engaged in the exploitation, development and acquisition of natural gas, NGLs and oil properties located in two shale plays in the Appalachian Basin in West Virginia, Ohio and Pennsylvania. For the three months ended June 30, 2013, Antero Resources reported income from continuing operations of $131.2 million on revenues of $387.1 million, compared with a loss from continuing operations of $33.2 million on revenues of $38.9 million for the same period a year ago. Founded in 2009, the company has about 184 employees.
Underwriters plan to offer 30 million shares of Antero Resources at $38 to $42 each to raise $1.2 billion. The IPO is expected to be priced on Thursday evening and trade Friday morning on the New York Stock Exchange. The joint-lead managers are Barclays, Citigroup, J.P. Morgan, Credit Suisse, Jefferies and Wells Fargo Securities. The co-managers are: Morgan Stanley, Tudor Pickering Holt, Baird, BMO Capital Markets, Capital One Securities, Raymond James, Scotiabank, Howard Weil, Credit Agricole CIB, KeyBanc Capital Markets, Mitsubishi UFJ Securities, BB&T Capital Markets and Comerica Securities.
MacroGenics is a Rockville, Maryland-based clinical-stage biopharmaceutical company focusing on developing innovative monoclonal antibody-based therapeutics to treat cancer and autoimmune diseases. In addition, the company has collaborations with Les Laboratoires Servier and Institut de Recherches Servier, Gilead Sciences Boehringer Ingelheim International GmbH and Pfizer, among others. Under its current strategic collaborations, MacroGenics has received about $106 million in non-equity funding during the three-year period ended June 30, 2013. For the six-month period ended June 30, 2013, MacroGenics reported a net loss of $3.7 million on revenues of $22.9 million, compared with net income of $7.9 million on revenues of $37.9 million for the same period a year ago. Founded in 2000, the company has about 156 employees.
Underwriters plan to offer 4 million shares of MacroGenics at $14 to $16 each to raise $60 million. The IPO is expected to be priced on Thursday evening and trade Friday morning on The NASDAQ Global Select Market. The joint-lead managers are: BofA Merrill Lynch, Leerink Swann and Stifel. The co-managers are: Lazard Capital Markets and Wedbush PacGrow Life Sciences.
SFX Entertainment is based in New York City. It believes it is the largest producer of live events and entertainment content focused exclusively on the electronic music culture or “EMC.” The company’s forte is electronic dance music. Its business ranges from music festivals, including TomorrowLand and Sensation, to Miami nightclubs and an online music store called beatport. For the six-month period ended June 30, 2013, SFX Entertainment reported a net loss of $44.7 million on revenues of $37.6 million, compared with a net loss of about $3.2 million on revenues of $378,000 for the same period a year ago. Founded in 2012, the company has about 177 employees.
Underwriters plan to offer 16.7 million shares of SFX Entertainment at $11 to $13 each to raise $200 million. The IPO is expected to be priced on Tuesday evening and trade Wednesday morning on The Nasdaq Global Select Market. The joint-lead managers are UBS Investment Bank, Jefferies and Deutsche Bank Securities. The co-managers are: Stifel and BTIG.
Western Refining Logistics, LP of El Paso, Texas, is a fee-based limited partnership recently formed to own, operate, develop, and acquire terminals, storage tanks, pipelines and other logistics assets. The company’s initial assets consist of pipeline and gathering assets and terminalling, transportation, and storage assets in the Southwestern portion of the United States, including about 300 miles of pipelines and about 7.9 million barrels of active storage capacity, as well as other assets. For the 12-month period ended June 30, 2013, Western Refining Logistics reported pro forma cash available for distribution of $29.2 million on revenues of $102.2 million. For the 12-month period ended Sept. 30, 2014, Western Refining Logistics estimates pro forma cash available for distribution of $57.7 million on revenues of $130.8 million.
Underwriters plan to offer 12.5 million common units of Western Refining Logistics at $19 to $21 each to raise $250 million. The IPO is expected to be priced on Tuesday evening and trade Wednesday morning on the New York Stock Exchange. The joint-lead managers are BofA Merrill Lynch, Barclays, Goldman Sachs and Wells Fargo Securities. The co-managers are: Credit Suisse, Deutsche Bank Securities, UBS Investment Bank, Credit Agricole CIB and SunTrust Robinson Humphrey.
(Note: The company plans to make a minimum quarterly distribution of $0.2875 per common unit and subordinated unit (or $1.15 per common unit annually to yield 5.75 percent at the mid-point of its pricing range.)
Looking into next week, the calendar has one IPO, but it is a fast-growing “cloud computer” company with surging profits.
Stay tuned.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.