The IPO Buzz: Some Good News Among The Gloom

The eyes and ears of the financial world were glued to the corner of Broad and Wall Streets on Friday. The granddaddy of the U.S. stock market indexes, the Dow Jones Industrial Average, plunged over 500 points for the day and lost over 1,000 points for the week. The Dow moved into correction mode – a drop of 10 percent or more from a previous high. As the Dow’s decline picked up speed on Friday, the news coverage became more somber.

Although the Dow’s fall caused some serious agita, not all the news was bad.

The other major U.S. stock market indexes, the S&P 500 and the NASDAQ Composite Index, also tumbled on Friday, with each dropping over 3 percent for the day. Those two, however, still have some wiggle room before they slide into correction modes.

The S&P 500 closed on Friday, Aug. 21, at 1,970.86. It would have to close at or below 1,916.10 for a correction.

The NASDAQ Composite ended Friday’s session at 4,706.04. The Nasdaq would have to at or below 4,681.34 for a correction.

Friday’s stock market dive was a front-page story on Saturday for The New York Times. In the past, when news about the U.S. stock market’s slide hit Page 1 of The NYT, it marked the turning point. We’ll have to wait and see what happens this week.

A Fortunate Break

In the background was the IPO market.

It has been closed for business due to the seasonal break during the two weeks before Labor Day through a week or so after Labor Day. The good news was that there was nothing on the IPO calendar to have been either cut in size to get it out the door or to get postposed “due to market conditions.”

Healthcare, Lawns and Pets

Nevertheless, not all of Wall Street’s bankers were on vacation. The U.S. Securities and Exchange Commission’s filing window was open for business.

Nine companies filed plans to go public last week. They were looking to raise nearly $1.2 billion. Included were four healthcare providers, a provider of landscaping supplies and a pet care company recycled into going public once again after it was taken private in 2006.

Surgery Partners (SRGY – proposed), based in Nashville, believes it is one of the largest and fastest-growing surgical services businesses in the country. In partnership with physicians, the company owns or operates about 99 surgical facilities comprised of 94 ambulatory surgery centers and five surgical hospitals in 28 states.

Founded in 2004, Surgery Partners reported for the six months ended June 30, 2015, a net loss attributable to Surgery Center Holdings (non-controlling interests) of $12.2 million on revenues of $457 million versus a net loss attributable to Surgery Center Holdings of $4.7 million on revenues of $147.3 million for the same period a year ago.

Surgery Partners filed for an IPO to raise $431.3 million on Aug. 17, 2015.

(For more information, please click here: Surgery Partners)

 SiteOne Landscape Supply (SITE – proposed), based in Roswell, Georgia, believes it is the largest and only national wholesale distributor of landscape supplies in the United States. It also has a growing presence in Canada. The company’s customers are primarily residential and commercial landscape professionals who specialize in the design, installation and maintenance of lawns, gardens, golf courses and other outdoor spaces. SiteOne has about 471 branch locations in 44 states and five provinces. It offers a selection of more than 90,000 SKUs (stock-keeping units) including irrigation supplies, fertilizer and weed-control products, landscape accessories, nursery goods, hardscapes (such as pavers, natural stones and blocks), outdoor lighting and ice melt products. In addition, it provides complementary value-added consultative services to support its products.

Founded in 2001, SiteOne Landscape Supply reported net income attributable to Successor Company common stock/Predecessor Company equity interests of $1.9 million on net sales of $707.3 million for the six months ended June 30, 2015, versus net income attributable to Successor Company common stock/Predecessor Company equity interests of $1.6 million on net sales of $600.9 million for the same period a year ago.

SiteOne Landscape Supply filed for an IPO to raise $100 million on Aug. 18, 2015.

(For more information, please click here: SiteOne Landscape Supply)

Petco Holdings, based in San Diego, is a leading specialty retailer of pet food, supplies, services and companion animals in the United States. The company offers its products in more than 1,400 store locations across the country and through its websites.

Founded in 1965, Petco reported net income of $47 million on net sales of $2.17 billion for the 26 weeks ended Aug. 1, 2015, versus net income of $32.8 billion on net sales of $1.94 billion for the same period a year ago.

Petco Holdings filed for an IPO to raise $100 million on Aug. 17, 2015.

(For more information, please click here: Petco Holdings)

Passing point of interest: This is Petco’s third trip to market.

The first time it went public was in 1994 (no details available). Petco was taken private in 2000 for a reported $600 million.

The second time that Petco went public was in 2002, when it offered 14.5 million shares at $19 each. Petco was taken private in 2006 for a reported $1.7 billion.

The third time was last week.

This week’s IPO calendar is on the beach with the investment bankers until after Labor Day. But stay tuned. Something always happens, even when the Street has blocked out vacation time.

Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.