The IPO Buzz: Deals by the Dozen

Unlike today, there was no talk of an “IPO bubble” 15 years ago.

 

Nevertheless, the fact that this week’s IPO calendar totals 12 IPOs has attracted attention. The dozen deals are expected to raise almost $2 billion.

 

But there is more to this week’s story than those numbers. There are a few headliners on the marquee.

 

 

Dunkin’ Brands Group, based in Canton, Massachusetts, operates franchise restaurants under its Dunkin’ Donuts and Baskin-Robbins brands to over 16,000 points of distribution in 57 countries. The company was founded in 1950 and has about 1,075 employees. Dunkin’ Brands reported a net loss of $1.7 million on revenues of $139.2 million for the three months ended March 31, 2011, compared with net income of $5.9 million on revenues of $127.4 million for the same period a year ago.

 

Bankers plan to offer 22.5 million shares at $16 to $18 each to raise about $382.5 million.

 

The IPO is expected to be priced on Tuesday evening, July 26, and to trade on Wednesday morning on the NASDAQ Global Market under the proposed symbol “DNKN.” Joint-lead managers are: J.P. Morgan, Barclays Capital, Morgan Stanley, BofA Merrill Lynch and Goldman, Sachs.

 

(Note: The principal owners are Bain Capital, Carlyle Partners and Thomas H. Lee Equity Fund V. Each will own about 26.1 percent of the outstanding shares after the offering.)

 

But the fast money is on a couple of other deals, according to the IPO handicappers.

 

This week’s “Most Wanted” list consists of a pair of deals. The common thread is that each company is linked in a way to a hot commodity: One sells tea and the other provides equipment and services to the oil industry.

   

Teavana Holdings, based in Atlanta, is a specialty retailer offering more than 100 varieties of premium loose-leaf teas, teawares such as handcrafted cast-iron, clay and ceramic teapots, and other tea-related merchandise through 146 company-owned stores in 34 states and 15 franchise stores in Mexico. Founded in 1997, the company has about 1,075 employees.

 

Note: Teavana reported net income of $3.3 million on revenues of $34.5 million for the three months ended May 1, 2011, compared with net income of $1.9 million on revenues of $25.8 million for the same period a year ago.

 

Bankers plans to offer 7.14 million shares at $13 to $15 each to raise about $100 million.

 

The IPO is expected to be priced on Wednesday evening, July 27, and to trade on Thursday morning on the NASDAQ Global Market under the proposed symbol “TEA.” Joint-lead managers are: BofA Merrill Lynch and Goldman Sachs.

 

(Note: The company plans to offer 1.07 million shares and selling shareholders plan to offer 6.07 million shares.)

 

There’s some buzz out there that people are looking at Green Mountain Coffee Roasters (GMCR) as a comparison. Green Mountain produces and sells more than 200 varieties of coffee, cocoa, teas and other beverages. Its stock closed on Friday, July 22, at $92.71 — UP 215.9 percent from $29.35 on July 23, 2011.

 

 

C&J Energy Services, based in Houston, is provider of premium hydraulic fracturing and coiled tubing services in Texas, Louisiana, and Oklahoma. Founded in 2006, the company has about 720 employees.

 

Note: C&J Energy reported net income of $29.1 million on revenues of $127.2 million for the three months ended March 31, 2011, compared with net income of $2.2 million on revenues of $32.6 million for the same period a year ago.

 

Bankers plans to offer 11.5 million shares at $25 to $28 each to raise about $341 million.

 

The IPO is expected to be priced on Thursday evening, July 28, and to trade on Friday morning on the New York Stock Exchange under the proposed symbol “CJES.” Joint-lead managers are: Goldman Sachs, J.P. Morgan and Citi

 

(Note: The company plans to offer 4.75 million shares and selling shareholders plan to offer 6.75 million shares.)

 

The Dow Jones U.S. Oil Equipment & Services Index has greatly outperformed the underlying stock market.

 

On Friday, July 22, 2011, the index closed at 733.91 – UP 61.8 percent from 453.58 on July 23, 2010.

 

On Friday, the S&P 500 Index closed at 1,345.02 – UP 22 percent from 1,102.66 on July 23, 2010.

 

As for next week, the IPO traffic just keeps coming. Stay tuned.