The IPO Buzz: Summer Traffic Jam

Traditionally, the IPO traffic grinds to a haul about two weeks ahead of the Labor Day holiday and kicks back into gear about two weeks after. But this doesn’t mean August’s traffic slows down. It doesn’t.

 

Over the last 40 years, the average IPO traffic has been 315 deals per year, according to the U.S. Securities and Exchange Commission filings. That’s makes an “average” month 26 deals.

 

And August? An “average” August is — 26 deals.

 

Taking a look at the foreword calendar, there are 13 deals on August’s IPO launching pad – seven this week and six the following.

 

A passing point of interest: 80 IPOs have been priced over the last seven months. That makes an “average” 2010 month 11.4 deals.

 

Three of this week’s planned seven offerings should draw some interest, according to investment professionals. Those are Ambow Education Holding (AMBO – proposed), Gordmans Stores (GMAN – proposed) and NXP Semiconductors (NXPI – proposed).

 

Ambow Education Holding: “The company operates schools (K-12), colleges, and training centers throughout China. It divides its offerings into ‘Better Schools,’ which include its K-12 schools, tutoring centers, and online tutors, and its career enhancement training centers or ‘Better Jobs.’ The company’s 1 million-plus students can choose from more than 120 Ambow locations in 30 of the country’s 31 provinces. It works with partners Cisco Systems and McGraw-Hill, among others, to develop career paths for its students and educational programs for its corporate customers. Dr. Jin Huang, president and CEO, formed Ambow Education in 2000; it filed to go public in 2010.” (Attribution: Hoover’s) 

 

At the close on Friday, July 30, Google’s School Index was down 7.75 percent for the year to date, compared with a drop of just 0.64 percent for the NASDAQ Composite Index.

 

Ambow plans to price 10.7 million American Depositary Shares (ADS) at $10 to $12 each to raise about $117 million. The company plans to offer 7.5 million ADS and selling shareholders plan to offer 3.2 million ADS. The IPO is expected to start trading on Thursday, Aug. 5, 2010.

 

Gordmans Stores: “The holding company owns the Gordmans department store chain, which is comprised of more than 60 stores in various regional shopping centers in more than 15 Midwestern states. They specialize in selling women’s, men’s, and junior’s apparel, accessories and footwear, as well as home décor items at up to 60% off regular department and specialty store prices (known as off-price). Gordmans competes in the off-price market of the retail industry and also separates itself from discount stores by offering brand-name fashions and a more upscale shopping environment. The company filed a $75 million initial public offering in the first half of 2010.”

(Attribution: Hoover’s)

 

At the close on Friday, July 30, Google’s Retail (Department & Discount) Index was down 4.53 percent for the year to date, compared with a drop of just 0.64 percent for the NASDAQ Composite Index.

 

Gordmans Store plans to price about 5.3 million shares at $13 to $15 each to raise about $75 million. The company plans to offer about 3.2 million shares and selling shareholders plan to offer about 2.1 shares. The IPO is expected to start trading on Thursday.

 

NXP Semiconductors NV: “The one-time semiconductor unit of Philips is one of the largest chip makers in the world. Analog and mixed-signal integrated circuits (ICs) from its huge product portfolio are used in everything from car radios to computer peripherals to wireless handsets. The company also makes many types of general-purpose discrete semiconductors and logic devices. In addition to Philips, NXP’s 1,000-plus customers include Apple, Ericsson, Nokia, Panasonic, Samsung, and Sony. In 2006, Philips sold majority control of NXP to a consortium of private equity firms for €3.4 billion, keeping an equity stake of around 20% for itself. NXP filed for an IPO in 2010.”

(Attribution: Hoover’s)

 

At the close on Friday, July 30, Google’s Semiconductors  Index was down 2.02 percent for the year to date, compared with a drop of just 0.64 percent for the NASDAQ Composite Index.

 

NXP Semiconductors plans to price 34 million shares at $18 to $20 each to raise about $646 million. The IPO is to start trading on Friday.

 

In closing, please note: The D. Medical Industries offering on this week’s equities calendar is not an IPO. Its underlying shares have been traded on the Tel-Aviv Stock Exchange since 2003. Check out its current price yourself: DMDC.TA. Some services have called this deal an “IPO.”