The IPO Buzz: Big Bucks at the Circus

Here’s the buzz on each.

 

Zipcar, based in Cambridge, Massachusetts, offers a “wheels when you want them” car-sharing or rental service. The vehicles are available for use by the hour or by the day.

 

The concept caught on.

 

From a start-up operation in 2000 through the end of 2010, Zipcar reported it has signed up over 560,000 members, or “Zipsters,” located in 14 major metropolitan areas and on more than 230 college campuses in the United States, Canada and the United Kingdom.

 

Zipcar plans to price 8.33 million shares at $14 to $16 each on Wednesday evening, April 13, to trade on Thursday. The company plans to offer 6.67 million shares and selling shareholders plan to offer 1.67 million shares. (Figures are rounded.)

 

In the past year, Zipcar achieved a swing into profitability.

 

For the three months ending Dec. 31, 2010, Zipcar reported EBITDA of $3.6 million on revenues of $52.1 million, compared with a negative EBITDA of $316,000 on revenues of $35.8 million for the same period a year ago.

 

The word around the Street is Zipcar’s aftermarket action could be “off the wall” at current pricing levels.

 

Arcos Dorados Holdings, based in Buenos Aires, Argentina, is the world’s largest franchisee of McDonald’s. Arcos is the largest quick-service restaurant chain in Latin America and the Caribbean. Just picture McDonald’s mascot, red-haired clown Ronald McDonald, getting ready for carnival in Rio or a week at the beach in the Virgin Islands.

 

Arcos operates about 1,755 McDonald franchised restaurants in 19 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela.

Arcos plans to price 62.5 million shares at $13 to $15 each on Wednesday evening, April 13 to trade Thursday. The company plans to offer 12.5 million shares and selling shareholders plan to offer 50 million shares.

 

Its financials tell a growth story.

 

For the year ending Dec. 31, 2010, Arcos reported net income of $106.3 million on total revenues of $3 billion, compared with net income of $80.4 million on total revenues of $2.7 billion for the same period a year ago.

 

McDonald’s (MCD) is one of the 30 blue-chip companies found in the Dow Jones Industrial Average. A recent report showed about 1,316 institutional investors own shares in McDonald’s, the home of the Big Mac.

 

Now here comes Big Mac’s largest franchisee -– maybe it could be a baby blue chip? This IPO could catch the attention of any single one or all 283 institutions listed in Morningstar’s Diversified Emerging Markets mutual fund category.

 

But these two IPOs are not the only acts in this week’s IPO circus. Here are some of the others, all scheduled to be priced on Wednesday evening, the 13^th, to trade on Thursday, April 14^th:

 

Box Ships (TEU – proposed) is a newly formed international shipping company based in Voula, Greece. The company plans to offer 10 million shares at $15 to $17 each on Wednesday and expects to start trading on Thursday.

 

Ellie Mae (ELLI – proposed) hosts an electronic mortgage origination network provider based in Pleasanton, California. The company plans to offer 7.5 million shares at $9 to $11 each on Wednesday and expects to start trading on Thursday.

 

TMS International (TMS – proposed) is a provider of outsourced industrial services to steel mills company based in Glassport, Pennsylvania. The company plans to offer 12.5 million shares at $15 to $17 each on Wednesday and expects to start trading on Thursday.

 

Sequans Communications S.A. (SQNS – proposed) is a fabless designer, developer and supplier of 4G semiconductor solutions based in Paris, France. The company plans to offer 9.2 million shares at $11 to $13 each on Thursday and expects to start trading on Friday.

 

Mission NewEnergy Limited (MNEL – proposed) is a producer of biodiesel that integrates sustainable biodiesel feedstock cultivation based in Osborne Park, Western Australia.

 

Note: Mission NewEnergy is being carried by various IPO services as an initial public offering. It is not. It is a secondary offering. Check out its prospectus. It states: “Our ordinary shares are listed on the Australian Securities Exchange under the symbol MBT.AX” 

 

As you can see, the IPO show gets under way on Wednesday evening, the 13^th, with trading on Thursday, April 14th, assuming no deal gets accelerated.

 

Maybe the bankers needed Monday and Tuesday to add up last year’s loot to get their returns in by Friday’s tax deadline?