The market may still be cautious when it comes to the IPO market. After all, Facebook, Inc. (NASDAQ: FB), Groupon Inc. (NASDAQ: GRPN), and Zynga, Inc. (NASDAQ: ZNGA) have all proven to be disasters. Still, we have two real companies coming public in the week ahead that actually generate sales that are easy to tabulate and easy to understand.
These two IPOs are Lifelock Inc. under the “LOCK” stock ticker, and Dave & Buster’s Entertainment Inc. under the “PLAY” stock ticker. Lifelock is an identity protection solution that is sold on a subscription basis direct to consumers. Dave & Buster’s is a giant arcade game destination for adults and children with a restaurant and bar to boot.
Lifelock is expected to offer about 15.7 million shares in a price range of $9.50 to $11.50 in a deal underwritten by BofA/Merrill Lynch, Deutsche Bank, and Goldman Sachs. At the mid-point of the range this is expected to have a market cap of less than $900 million, but that may change as the mid-week IPO gets closer and as the order book fills up. Venture backers include Bessemer Ventures (23.8%), Kleiner Perkins Caufield & Byers (11.8%) and Industry Ventures (10.3%), and key stakes are held by Goldman Sachs Group Inc. (NYSE: GS) at 11.2% and Symantec Corp. (NASDAQ: SYMC) at 8.3%.
Dave & Buster’s is expected to offer almost 7.7 million shares in a price range of $12 to $14 per share in a deal underwritten by Goldman Sachs, Jefferies & Co., and Piper Jaffray. Be advised that this is a private equity-backed IPO as the entertainment venue was taken private in 2006 by Wellspring and HBK. The company said, “We intend to use the net proceeds from this offering to reduce our aggregate indebtedness by approximately $80.0 million, as well as to pay related premiums, interest and expenses. After applying the proceeds from this offering, our aggregate indebtedness will be approximately $384.8 million on an as adjusted basis as of July 29, 2012.”
JON C. OGG