The IPO Buzz: Five IPOs and a Speed Bump

Let’s take a look at the present and the recent past.

2013 IPO Traffic
This year’s calendar has priced 17 IPOs, according to the U.S. Securities and Exchange Commission filings. Add to that are the five IPOs set to be priced this week. That’s it for the time being.

2012 IPO Traffic
Last year’s calendar experienced the same slowdown. It priced 16 IPOs through mid-February and then hit a speed bump. Only five IPOs were priced during the rest of the month. (Note: For the full year, the 2012 calendar priced 132 IPOs, excluding unit offerings, closed-end funds and foreign companies offering American depositary shares for the first time in the U.S. capital markets.)

2011 IPO Traffic
In 2011, the IPO traffic was the same. The calendar priced 22 IPOs through mid-February, and then just one for the balance of that month. (Note: The 2011 calendar priced 132 IPOs.)

2010 IPO Traffic
In 2010, once again it was the same. The calendar priced 13 IPOs through mid-February and nothing for the rest of the month. (Note: The 2010 calendar priced 153 IPOs.)

So there you have it – a fast start and then a slowdown.

 

The earnings season could be the reason. IPOs are no different than any publicly traded companies. They must file their year-end results with the SEC. Once their numbers are in, you can look for a pickup in the IPO traffic much like in past years.

Where the Money Is
This brings us to this week. There are two on the calendar that draw some interest: ConnectOne Bancorp (CNOB – proposed) and XOOM (XOOM – proposed).

ConnectOne Bancorp plans to price 1.6 million shares at $26 to $29 each on Monday evening. The IPO is expected to start trading on Tuesday morning on the NASDAQ Global Market under the proposed symbol “CNOB.” The joint-lead managers are Stifel. The co-managers are Keefe, Bruyette & Woods and Sandler O’Neill + Partners, L.P.

Based in Englewood Cliffs, New Jersey, ConnectOne Bancorp became the holding company in 2008 for ConnectOne Bank – formerly known as North Jersey Community Bank. ConnectOne operates eight branches serving customers in New Jersey from its offices in Bergen, Hudson, and Monmouth Counties. The bank offers deposit and loan products and services to the general public and small to medium-sized businesses. It has about 98 employees.

ConnectOne Bancorp plans to sell all of the shares in the offering. It expects to have about 4.75 million shares outstanding after the offering.

XOOM plans to price 5.75 million shares at $13 to $15 each on Thursday evening. The IPO is expected to start trading on Friday morning on the NASDAQ Global Market under the proposed symbol “XOOM.” The joint-lead managers are Barclays and Needham. The co-managers are Raymond James and Baird.

Based in San Francisco, XOOM believes it is a pioneer in the online consumer-to-consumer international money transfer industry. The company began servicing customers 12 years ago. XOOM offers it services in 30 countries, including Latin America, Australia, Europe, India, Jamaica, the Philippines and South Africa. XOOM was formed in 2001. It has about 150 employees.

XOOM plans to sell about 4.65 million shares and selling shareholders plan to sell about 1.1 million shares. After the offering, the company expects to have about 31.3 million shares outstanding.

Industrial Sector
Both ConnectOne Bancorp and XOOM compete in the U.S. bank industrial sector. Over the last 52 weeks, this sector has been an outperformer. On Friday, Feb. 8, 2013, the Dow Jones U.S. Banks Index closed at 239.60 – UP 23.2 percent from 194.33, its close on Feb. 10, 2012. The S&P 500 Index was up 13.1 percent over the same period.

That will bring us to next week with a blank calendar. But don’t go away. Under the JOBS Act, the calendar can fill up quickly.

Stay tuned.