Posts related to ‘IPOs’

Underwriting Syndicate Bonanza Continues (FTNT, AWK, BZ, LFT, SII)

This morning we have a syndicate bonanza with a very solid IPO pricing and many secondary offerings getting priced.  Fortinet, Inc. (NASDAQ: FTNT) priced 12.5 million shares in IPO at $12.50, above the $9.00 to $11.00 range.   There are also many secondary offerings:  American Water Works (NYSE: AWK) 37.35 million shares priced at $21.63; Boise Inc. (NYSE: BZ) 17 million shares priced at $4.85; Longtop Financial Technologies Limited (NYSE: LFT) 3.7 million shares priced at $31.25; Smith International Inc. (NYSE: SII) priced 28 million shares priced at $26.50.

We have detailed information on the size, use of funds, underwriters, and performance on each below.
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Posted on: November 18, 2009 – 10:01 am in ADR, IPOs, Secondary Offering, , , , ,

Long-Past SPAC Deals Reach Back for Warrants, More Deal News (SGS, HOL, EST, CIO, PAX, TMI, CFQCF)

We have been given some exclusive coverage on the recent developments in special purpose acquisition companies and blank check companies from SPACupdate.com this morning.  Stream Global Services (AMEX: SGS), the business outsourcer brought public through SPAC Global BPO Services Co., has launched an offer to buy back its warrants from its blank check merger. As more than a dozen SPAC targets have leaped past their blank check’s IPO value, it is expected that investors will clamor to buy up warrants that offer big discounts on rising stock and that the companies affiliated with those blank checks will set out to curb dilution through buybacks.

Friday, China Holdings Acquisition Co. (AMEX: HOL) will have its deal vote to bring ceramic tile maker Jinjiang Hengda Ceramics Co., Ltd. The SPAC, earlier this week, entered into an agreement with forward contract champ Victory Park Capital Advisors to buy back 4 million shares at a small premium. The $150 million SPAC joins a long list of successful blank checks from this fall—among them, REIT-targeting vehicles Enterprise Acquisition Co. (AMEX: EST)—that used forward contracts to get their deals done.
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Posted on: November 18, 2009 – 8:50 am in IPOs, Mergers and Buy Outs, Private Equity, , , , , , ,

Melco Crown Outlines IPO Risks at Las Vegas Sands, MGM Too (MPEL, LVS, MGM, WYNN)

Melco Crown Entertainment Ltd. (NASDAQ: MPEL) is holding up better than many might have expected after the stellar rise seen in the casino stocks with Macau ties.  Melco Crown turned a wider loss over a year ago, despite a 70% revenue rise.  The loss was on a net basis rather than operating basis on higher depreciation and related expenses as well accounting for interest payments from the City of Dreams project.  This has implications for the coming Las Vegas Sands Corp. (NYSE: LVS) IPO, and possibly even for MGM Mirage (NYSE: MGM) after Wynn Resorts Ltd. (NASDAQ: WYNN) managed its IPO for Macau.
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Posted on: November 17, 2009 – 4:12 pm in Casinos, China, Earnings, IPOs, , , ,

Steel IPO Filing: Hirschfeld Industries, Inc. (HSFD)

Hirschfeld Industries, Inc. filed after the close on Monday to come public via an initial public offering of up to $150,000,000 in equity being sold via the New York Stock Exchange under the stock ticker “HSFD.”  No terms and conditions were set, so that $150 million should be considered as “for filing purposes only.”  Stock will be sold both by the company and by shareholders, and proceeds to the company are earmarked for debt repayment and for general corporate purposes.
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Posted on: November 17, 2009 – 11:46 am in IPOs, Infrastructure, Metals,

SPAC/Blank Check IPO Filing: 57th Street General Acquisition Corp.

The world of special purpose acquisition companies may get yet another new entrant.  After the close of trading on Monday came the filing for 57th Street General Acquisition Corp. to come public via an initial public offering.  This deal is being brought by Morgan Joseph and by Ladenberg Thalman & Co.   57th Street plans to sell 5,000,000 Units, each at a purchase price of $10.00 per unit and consisting of one share of common stock and one warrant to purchase one share of our common stock with an $11.50 strike price.

57th Street is a newly organized blank check company formed for the purpose of acquiring (or merging with) one or more operating businesses or assets that have not yet been identified.  This blank check has a bit shorter of a lease as it will only have 15 months from the date of this prospectus to consummate its initial business transaction.

Unfortunately, this one plans to trade OTC on the Bulletin Board.

Jon C. Ogg

Posted on: November 17, 2009 – 11:31 am in IPOs, Mergers and Buy Outs, Private Equity

Bristol-Myers Cleans Up on Mead Johnson (BMY, MJN)

Money ImageBristol-Myers Squibb Company (NYSE: BMY) is going to completely separate itself from its holdings in Mead Johnson Nutrition Company (NYSE: MJN).  The company expects that the split-off will be a tax-advantaged way to divest these holdings and is expected to be net cash flow positive to the BioPharma business and is expected to be accretive to earnings per share beginning in 2010.  Mead Johnson has had one unbelievable year.  This came public in February and traded as low as $25.72 after the IPO.  Shares closed at $45.25 on Friday.
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Posted on: November 16, 2009 – 9:29 am in Drug companies, Healthcare, IPOs, Mergers and Buy Outs, ,

Is Citi’s Primerica IPO For You (C, MS)

It has been some time in the making and won’t be the last IPO or divestiture out of Citigroup Inc. (NYSE: C).  The company is proceeding to divest its Primerica Inc. via an initial public offering.
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Posted on: November 6, 2009 – 12:36 pm in Banking, Financial Stocks, IPOs, ,

Trouble in Property Syndicates (TPGI, AVI)

We have two deals which have been called off in the land of mixed use properties as a secondary by Thomas Properties Group, Inc. (NASDAQ: TPGI) and one was the IPO which was supposed to price from Aviv REIT Inc. (NYSE: AVI).

Thomas Properties Group, Inc. (NASDAQ: TPGI) announced last night that that it has postponed its secondary offering of 22 million shares of common stock.  The reason, “due to unfavorable market conditions.”… management said that it does not consider the current market price of the common stock to be reflective of its inherent value.

Aviv REIT Inc. was supposed to be on the IPO deck.  The REIT, real estate investment trust, focuses on healthcare properties.  The IPO was on deck to price last night or this morning as the company and shareholders planned to sell 16.6 million shares in an indicated price range of $17 to $19 per share.  We had heard only mixed information, and no date nor new effort terms have been indicated.

If you have been tracking how this 2009 IPO market went from Winola to something far worse, this may not be a surprise.  Also worth noting is that of the deals we track for 2009 we have more that are busted than those which are higher.

JON C. OGG

Posted on: November 4, 2009 – 9:40 am in IPOs, REIT, Secondary Offering, ,

Chinese Hotel IPO: 7 Days Group Holdings Limited (SVN, HMIN)

china map7 Days Group Holdings Limited is national economy hotel chain based in China, and it has just filed to come public via an Inital Public Offering.  No terms were disclosed other than it will sell up to $100 million in common stock via ADRs.  It plans to list its stock under the “SVN” ticker on the New York Stock Exchange with J.P. Morgan and Citigroup as the lead underwriters.

To many investors, this will sound  like the story of Home Inns & Hotels Management Inc. (NASDAQ: HMIN).
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Posted on: November 2, 2009 – 4:38 pm in ADR, China, Entertainment, IPOs, ,

Coal IPO Hikes Planned Sale (CLD, RTP, ACI)

Coal ImageIt seems that there is no caution in all the pending Initial Public Offerings coming to market.  Cloud Peak Energy, Inc. is raising the amount targeted for its capital raise of up to $650 million from an initial target of $500 million when the filing was first made in August 2009.  This one will trade on the New York Stock Exchange under the symbol “CLD”  and the listed underwriters in the amended prospectus are Credit Suisse, Morgan Stanley, and RBC Capital Markets.
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Posted on: November 2, 2009 – 2:03 pm in Commodities, IPOs, , ,

Ancestry.com on IPO Deck (ACOM)

Ancestrycom LogoThis week we are expecting to see the market absorb the pending initial public offering from Ancestry.com Inc.  The company has a very unique niche and business model in that it operates a subscription-based online research system for family history.  Investors need to be aware that Ancestry.com Inc. is offering 4,074,074 shares and the selling stockholders are offering 3,333,333 shares in the IPO in an expected price range of $12.50 to $14.50 per share.  Ancestry.com will take the stock ticker “ACOM” on NASDAQ, which is the same ticker that was used for the former Agency.com when it was public.
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Posted on: November 2, 2009 – 1:16 pm in Entertainment, IPOs, Internet,

Can Hyatt IPO Beat Current IPO Doldrums? (H, HOT, MAR)

Hyatt LogoLate Friday night, after a really poor market day, Hyatt Hotels issued an amended S-1 for its planned initial public offering.  Because of last week’s market volatility, we are getting mixed signals about both the ultimate pricing and about which night the hotel operator will price its deal.  The deal is still set for 38 million shares in a price range expected as $23.00 and $26.00.  The company will also trade under the ticker “H” on the NYSE.

Hyatt is controlled by the Pritzker family.  It has a huge underwriting syndicate with Goldman Sachs as lead manager.  Co-managers are listed as Deutsche Bank, J.P. Morgan, Bank of America Merrill Lynch, Citigroup, UBS, HASBC, Piper Jaffray, Wells Fargo, and Scotia Capital.  Other companies also listed on the prospectus are Robert W. Baird, Loop Capital Markets, M.R. Beal, Ramirez & Co., Siebert Capital Markets, and The Williams Capital Group.  The underwriting group has an overallotment option to purchase up to an additional 5.7 million shares of common stock.

The mid-point of this IPO will generate roughly a $4.11 billion market cap, and the net tangible book value as of September 30, 2009 was approximately $4.5 billion (roughly $26.98 per share).  This is less than 80% of the value of Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) $5.4 billion market cap and less than half of Marriott International, Inc. (NYSE: MAR) $9 billion market cap.
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Posted on: November 2, 2009 – 12:45 pm in Entertainment, IPOs, Private Equity, REIT, , ,

Biotech IPO Filing: Aldagen, Inc. (ALDH)

Money Stack ImageWe have just seen a biotech company named Aldagen, Inc. file for an initial public offering of common stock.  This will trade under the proposed stock ticker “ALDH” on NASDAQ.  The company is developing proprietary regenerative cell therapies that target significant unmet medical needs.

The joint book-runners were listed as Cowen & Co. and Wells Fargo Securities.  No terms were offered on this deal other than that it would raise up to $80,500,000.00 via stock sales.  As with most IPO-stage biotech companies, Aldagen is effectively a non-revenue company as it is in the clinical and investigative stages of the biotech cycle.
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Posted on: October 28, 2009 – 9:31 am in Biotech, IPOs,

Two IPOs On Deck (ADUS, VSI, BX)

Money ImageWe have two initial public offerings today.  We have a poor pricing from Addus HomeCare Corporation (NASDAQ: ADUS) and a solid pricing from a Blackstone interest in the Vitamin Shoppe Inc. (NYSE: VSI) IPO.

Addus HomeCare Corporation (NASDAQ: ADUS) is joining the realm of disappointing initial public offerings.  The home-based medical and social service company, which would seem to be a big growth segment ahead, priced its 5 million share IPO at $10.00 per share.  This is below the $11.00 to $12.00 range. Robert W. Baird and Oppenheimer & Co. were joint book-running managers, and Stephens Inc. was listed as the co-manager.

Vitamin Shoppe Inc. (NYSE: VSI) actually looks like it broke the poor IPO trend.  This company, which sells vitamins and supplements priced its 9.096 million share IPO at $17.00.  This one is ABOVE the $14.00 to $16.00 per share range in an IPO being brought public by J.P. Morgan, BofA Merrill Lynch, and Barclays.  The Blackstone Group (NYSE: BX) is a holder of this company.

You can join our open email distribution list to get updates on top analyst upgrades and downgrades, top day trader alerts, IPO’s, secondary offerings, Warren Buffett and other guru activity, M&A and more.

JON C. OGG

Posted on: October 28, 2009 – 8:16 am in Healthcare, IPOs, Retail, , ,

Dole Joins Line of Disappointing IPOs (DOLE)

Dole LogoDole Food Company, Inc. (NYSE: DOLE) is making its re-return this morning and is joining in a long line of a very disappointing IPO market.  Dole may be the largest producer and seller of fresh fruits and vegetables in the world, but it is also effectively being treated the same as private equity backed deals as this company has been public before.  The Initial Public Offering was for 35.7 million shares and the $12.50 pricing is under the indicated price range of $13 to $15 per share.
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Posted on: October 23, 2009 – 9:50 am in Food, IPOs,

AGA Medical Debuts During Cautious IPO Market (AGAM)

Money ImageIt was just over the weekend that we noted how cautious the initial public offering market has become.  What a difference a couple months can make.  Today marks the debut of AGA Medical Holdings, Inc. (NASDAQ: AGAM).  The medical devices maker for the treatment of structural heart defects and vascular diseases priced its IPO of 13.75 million shares of common stock at $14.50 per share.  This is a poor pricing, but as of 11:00 AM EST this IPO is still trading just above its pricing.
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Posted on: October 21, 2009 – 11:02 am in IPOs, Medical,

3 More IPOs This Week Enter Troubled Waters (AGAM, DOLE, ZSTN)

Money ImageThe IPO market has not been going well. Over the weekend we gave a detailed run down of how many busted IPOs we had seen occur in the last couple of months, and this is setting the market up for trouble in companies which are considering becoming public.  AGA Medical Holdings (NASDAQ: AGAM), Dole Food Company (NYSE: DOLE), and ZST Digital Networks, Inc. (NASDAQ: ZSTN) are all on deck this week.
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Posted on: October 20, 2009 – 2:32 pm in Food, IPOs, Medical, Technology Companies, , ,

Are SPAC IPO Filings Back in Favor?

Money ImageGSME Acquisition Co. became the second Special Purpose Acquisition Company (SPAC) this year to file paperwork with the SEC to go public. The blank check wants to assemble a China-based dealmaking vehicle worth about $41 million.  SPACupdate.com has provided us with some detailed coverage of this company.  The SPAC is sponsored by GSME Capital Partners, an investment firm that operates in Shanghai. It is seeking to complete a transaction with a redemption threshold of 19.01%, a smaller-than-usual margin of voter rejection. GSME’s management consists of Jing Dong Gao, Eli D. Scher and Zhong Wen Lin.
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Posted on: October 20, 2009 – 2:12 pm in China, IPOs, Private Equity

IPO Market Showing Concern (MG, TLCR, BSBR, EM, CLNY, RA, FIG, ARI, VITC, ECHO, CPC, GAME, SNDA, CYOU, SOHU, CPIX, OMER, BX)

bull-and-bear-image2It was just in August that practically every single initial public offering was trading above its IPO price.  The market had rallied significantly, and still rallied after that to just this week have a 10,000 handle on the DJIA.  Investors started warming to more risk-based capital, and investment bankers were finally able to get deals done.  Even waves and waves of secondary offerings were able to be absorbed merely by brokers being able to tell clients they could buy stock at an implied discount to the average price over the few days before.  But suddenly, the IPO market has turned out some real dogs with fleas.

Mistra Group (NYSE: MG) priced its offering at $12.50 on October 7.  While it traded as low as $12.17, it has escaped the hangman’s file of ‘busted deals’ as it is now a $13.51 stock.  The one thing that may have helped was that it priced under an initial range of $14 to $16 per share.  Talecris Biotherapeutics Holdings Corp. (NASDAQ: TLCR) also went into the busted category temporarily after hitting a low of $18.01 after a $19.00 pricing.  Fortunately, it is up at $19.97 so is also now out of the hangman’s eyes.  Still, an 8% gain and a 5% gain in this market might leave some investors feeling lonely.  Banco Santander Brasil S.A. (NYSE: BSBR) was a very large IPO of over 500 million shares at an implied $13.40, and this one got out of the “busted IPO” dungeon on Thursday and closed at $13.51 on Friday.  Before Thursday it had spent its 6 prior trading sessions as a busted IPO.

Emdeon Inc. (NYSE: EM) had traded above $18.00 briefly after its IPO priced at $15.50 in August. But now the healthcare revenue and payment cycle management solutions provider, which is supposed to be a healthcare winner ahead, closed down at $15.35 on Friday  and had been slightly lower during the week.  This was effectively a re-IPO as Emdeon had been public before after General Atlantic Partners acquired it and it also received an investment from Hellman & Friedman. It also has ties to James Clark, the Netscape founder and was part of Healtheon.

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Posted on: October 17, 2009 – 8:45 am in ADR, Biotech, Business Services, China, Editor's Picks, Entertainment, IPOs, Mergers and Buy Outs, Private Equity, REIT, Secondary Offering, Trading Alert, Value Investing, , , , , , , , , , , , , , , , , ,

Quasi-IPO FILING: Golden Minerals Company (GDMN)

Gold ImageAn initial public offering filing has been made by a company called Golden Minerals Company, although we would rate this as a quasi-IPO that looks more like a secondary offering and not a full blown IPO.  This trades under the ticker of “GDMN” on the Pink Sheets and trades under the ticker “AUM” on the Toronto Stock Exchange.  It plans to trade on the NYSE AMEX.  No financial terms were given other than a proposed maximum offering of $115,000,000.00 and Dahlman Rose & Company, LLC will serve as the sole book-running manager.
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Posted on: October 15, 2009 – 10:24 am in Commodities, IPOs, Metals, OTC, Secondary Offering,