On this week’s calendar are a semiconductor company, a package software provider and a small-cap agricultural company as a unit offering. However the IPO handicappers are not looking for any record-shattering opening-day performances.
The Semiconductor
Alpha and Omega Semiconductor Limited (AOSL – proposed), a Sunnyvale, California-based designer, developer and global supplier of power semiconductors, plans to offer 5.1 million shares at $17 to $19 each to raise about $91.6 million. The company will offer about 3.4 million shares and selling shareholders will offer about 1.7 million shares. Alpha and Omega, formed in 2000, has about 855 employees.
For the three months ending March 31, 2010, Alpha and Omega reported profits attributable to equity holders of $9.6 million on revenues of $77.7 million, up from a loss of $5.6 million on revenues of $27.1 million for the same period a year ago.
Alpha and Omega’s industrial sector, Google Finance’s Semiconductor Index, was up 42.3 percent over the last 52 weeks. It has underperformed the Nasdaq Composite Index. It was up 49.3 percent over the same period of time.
Bankers plan to price the deal on Thursday evening, April 29, to trade on Friday, April 30.
The Software Provider
Convio (CNVO – proposed), an Austin, Texas-based provider of on-demand solutions enabling nonprofit organizations to more effectively raise funds, plans to offer 5.13 million shares at $10 to $12 each to raise about $56.5 million. The company will offer about 3.6 million shares and selling shareholders will offer about 1.5 million shares. Convio, formed in 1999, has about 350 employees.
This will be the company’s second attempt to go public. On Aug. 20, 2007, Convio filed for an IPO to raise $86.3 million and withdrew the offering on Aug. 5, 2008. This time around, co-lead managers Thomas Weisel Partners and Piper Jaffray have replaced the then-lead manager Goldman Sachs.
Convio’s industrial sector, Google Finance’s Software & Programming Index, was up 40.9 percent over the last 52 weeks. It, too, underperformed the Nasdaq Composite Index.
Bankers plan to price the deal on Wednesday evening, April 28 to trade on Thursday, April 29.
Listen to the Market
Here’s what enabled bankers to price 61 IPOs over a two- month period in 2007. (Note they priced only 62 for all of 2009.) The Dow Jones Industrial Average and the S&P 500 Index hit new closing highs in October 2007 and the Nasdaq Composite Index reached a recovery high. The IPO production line always follows the stock market’s momentum -– up and down. In up markets, the IPO production line keeps flowing for a month or two after a peak. In January 2008, bankers priced 12 deals, down from 23 in December 2007. Note the following:
- The Dow Jones Industrial Average closed at 14,164.53 on Oct. 9, 2007, and closed on Friday, April 23, 2010, at 11,204.28. It would need a 26.5 percent run to establish a new closing high.
- The S&P 500 closed at 1,565.15 on Oct. 9, 2007, and closed on Friday, April 23, 2010, at 1,217.28. It would need a 28.6 percent run to establish a new closing high.
- The Nasdaq Composite Index closed at 2,859.12 on Oct. 31, 2007, and closed on Friday, April 23, 2010, at 2,530.50. It would need a 13 percent run to establish a fresh recovery high. To establish a new closing high, the Nasdaq would need a 99.6 percent run to charge past its record closing high of 5,048.62 set on March 10, 2000 – just before the dot-com bust.
As they say in any sport, records are made to be broken. As for Wall Street – who knows?
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do they trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.