The deals are Companhia Vale do Rio Doce (Vale) (NYSE: RIO – quote, chart & news), EnergySolutions (NYSE: ES- quote, chart & news) and IPC The Hospitalist (GMS: IPCM – quote, chart & news). The last two priced their initial public offerings over the last eight months. All three are expected to raise a whopping $8.93 billion.
The Big Boy
Vale, a Brazilian-based mining and metals company, plans to price 259.9 million American Depositary Shares (ADS). Each ADS represents one common share. Based upon its closing price on Friday, July 11, at $31.53, the Vale deal would raise about $8.1 billion. The joint-lead managers are: Credit Suisse, Citi, HSBC and JPMorgan.
The Vale offering is expected to be priced Wednesday evening to trade Thursday morning.
IPO Offshoots
EnergySolutions, a Salt Lake City-based provider of technology-based nuclear services to government and commercial customers, plans to price 35 million shares. Based upon its closing price on Friday, July 11, at $21.95, the EnergySolutions deal would raise about $768 million. The joint-lead managers are Credit Suisse and JPMorgan.
The EnergySolutions offering is expected during the week of July 14.
Here’s what makes this deal interesting.
On November 14, 2007, EnergySolutions priced its IPO of 30 million shares at $23 each to raise $690 million. There was a selling shareholder, ENV Holdings LLC, which sold 18.2 million of the 30 million shares offered, according to its prospectus. ENV pocketed about $392 million before fees and exercising the greenshoe.
Fast forward to the present.
This time around, ENV Holdings will be selling all of the 35 million shares being offered; it expects to pocket $768 million. If the follow-on offering goes as planned, then ENV will have collected about $1.16 billion from the two offerings and still own 22 million shares.
IPC The Hospitalist, a North Hollywood, California-based company providing, managing and coordinating the care of hospitalized patients, plans to price 3.5 million shares. Based upon its closing price on Friday, July 11, at $19.23, the deal would raise about $67.3 million. The joint-lead managers are Credit Suisse and Jefferies.
The offering by IPC The Hospitalist is expected to be priced Tuesday evening to trade Wednesday morning.
Here’s what makes this deal interesting.
On Jan. 24, 2008, IPC The Hospitalist priced its IPO of 5.2 million shares at $16 each to raise $83.2 million. There were selling shareholders — entities affiliated with Bessemer Venture Partners, Morgenthaler Venture Partners, Scale Venture Partners and CB Healthcare Fund L.P. They sold 1.9 million shares, according to its prospectus. The “four amigos” pocketed about $30.4 million before fees and exercising the greenshoe.
Fast forward to the present.
This time around, the “four amigos” will be selling slightly over 2 million of the 3.5 million shares being offered. They expect to pocket about $38.6 million. If the follow-on offering goes as expected, then it looks as if they will have collected about $69 million from the two offerings and still own about 4.9 million shares.
Yes, it’s good to be an insider. And yes, it’s very good indeed to have generous second helpings from the IPO Payoff Window after your company has gone public.