The IPO Buzz: Summer Lightning

From July 5 through July 15, no fewer than 23 companies filed amendments adding additional underwriters to their pending IPOs and/or announcing proposed offering terms.

 

On July 5, the IPO calendar was clean and green – nothing on it. Then lightning struck. Over the last 10 days, three IPOs were priced, 13 jumped on the calendar and another three others are waiting in the wings, with offering terms, to launch their road shows. That’s not a bad, when you look in the rear-view window at last month’s traffic.

 

June’s calendar produced 11 IPOs.

 

This brings us to this week’s calendar. Seven IPOs are on tap. And what’s a calendar without a favorite or two — and a dark horse?

 

The favorites are Francesca’s Holdings and Zillow while the dark horse is Skullcandy, according to IPO professionals.

 

Francesca’s Holdings is a Houston-based specialty retailer operating 249 stores in 38 states appealing to fashion-conscious women ages 18 to 35 with clothes and accessories at “attractive prices.” (Translation: Plenty of dresses for under $50 each.) Founded in 1999, the company has about 1,650 employees. Francesca’s reported net income of $3.9 million on sales of $41.3 million for the 13-week period ended April 20, 2011, compared with net income of $1.6 million on revenues of $25.4 million for the same period a year ago.

 

Francesca’s plans to offer 10 million shares at $14 to $16 each to raise about $150 million. The company plans to offer 3.33 million shares and selling shareholders plan to offer 6.67 million shares.

 

The IPO is expected to be priced on Thursday evening, July 21, and to trade on Friday morning on the NASDAQ Global Market under the proposed symbol “FRAN.” Joint-lead managers are: Goldman, Sachs, J.P. Morgan and Jefferies.

 

The last specialty retailer IPOs were:

Zillow is a Seattle-based online provider of real estate information. The company, founded in 2004, has about 275 employees. Zillow reported a loss of $826,000 on revenues of $11.3 million for the three months ended March 31, 2011, compared with a loss of $2.8 million on revenues of $5.3 million for the same period a year ago.

 

Zillow plans to offer 3.46 million shares at $16 to $18 each to raise about $58.9 million. The offering has already been increased in size from 3.46 million shares at $12 to $14 each to raise $45 million.

 

The IPO is expected to be priced on Tuesday evening, July 19, and to trade on Wednesday morning on the NASDAQ Global Market under the proposed symbol “Z.” (For history buffs, Woolworth once traded under the NYSE symbol of Z). The lead manager is Citi.

 

Specialty technology IPOs are “in.” Consider:

Skullcandy is a Park City, Utah-based provider of stylish headphones, ear buds, docking station speakers, and other audio goodies, as well as apparel and accessories for youth market. The company, founded in 2003, has about 200 employees. Skullcandy reported net income of $1.1 million on revenues of $36 million for the three months ended March 31, 2011, compared with a loss of $808,000 on revenues of $21.7 million for the same period a year ago.

 

Skullcandy plans to offer 8.3 million shares at $17 to $19 each to raise about $150 million. The company plans to offer 4.16 million shares and selling shareholders plan to offer 4.16 million shares.

 

The IPO is expected to be priced on Tuesday evening, July 19, and to trade on Wednesday on the NASDAQ Global Market under the proposed symbol “SKUL.” Joint-lead managers are: BofA Merrill Lynch and Morgan Stanley.

 

Ask any kid what he or she thinks of Skullcandy. You’ll get an earful.  

 

As for next week, the IPO traffic continues. Stay tuned.