As markets reach toward new highs, especially the DJIA passing 20,000, more companies are considering entering the market. Generally speaking, a rising tide will lift all the boats, which does in fact help companies raise their valuations for how much money they can get in their initial public offerings (IPO).
Previously, we took a look at a couple other IPOs that just came up on the radar. Yet, here we have included some of the more recent companies that are registering with the U.S. Securities and Exchange Commission (SEC).
Invitation Homes recently filed an S-11 form with the SEC for its IPO. No pricing details were given in the filing, but the offering is valued up to $100 million. The company intends to list on the New York Stock Exchange under the symbol INVH.
The underwriters for the offering are Deutsche Bank, JPMorgan, Merrill Lynch, Goldman Sachs, Wells Fargo, Credit Suisse, Morgan Stanley, RBC Capital, Blackstone Capital Markets, BTIG, Evercore ISI, FBR, JMP Securities, Keefe Bruyette & Woods, Raymond James, Siebert Cisneros Shank and Zelman Partners.
This is a leading owner and operator of single-family homes for lease in the United States. Its portfolio of nearly 50,000 high quality homes is wholly owned and is concentrated in attractive in-fill submarkets of major metropolitan statistical areas. It has selected locations with strong demand drivers, high barriers to entry and high rent-growth potential.
The company is highly concentrated in the western United States and Florida, with 72% of its revenues generated in those regions and 54% of revenues coming from California and Florida alone during the three months ended in September 2016.
Invitation Homes intends to use the net proceeds from the offering to repay indebtedness, with the remainder going to working capital and general corporate purposes.
Kimbell Royalty Partners
This company filed its first S-1 form with the SEC as well for its IPO. Similarly, the company values its offering up to $100 million, although this number is usually just a placeholder. Kimbell Royalty Partners intends to list its units on the New York Stock Exchange under the symbol KRP.
The underwriters for the offering are Raymond James, RBC Capital, Stifel, Stephens and Wunderlich.
This is a Delaware limited partnership formed to own and acquire mineral and royalty interests in oil and natural gas properties throughout the United States. As an owner of mineral and royalty interests, this company is entitled to a portion of the revenues received from the production of oil, natural gas and associated natural gas liquids from the acreage underlying its interests, net of post-production expenses and taxes. It is not obligated to fund drilling and completion costs, lease operating expenses or plugging and abandonment costs at the end of a well’s productive life.
The primary business objective is to provide increasing cash distributions to unitholders resulting from acquisitions from its sponsors, the contributing parties and third parties and from organic growth through the continued development by working interest owners of the properties in which it owns an interest.
The company intends to use the net proceeds to make a distribution to the contributing parties.
Keane Group registered an amended S-1 form with the SEC for its IPO. The company priced its 16.7 million shares in the range of $17 to $19, with an overallotment option for an additional 2.505 million shares. At the maximum price, the entire offering is valued up to $364.90 million. The company intends to list on the New York Stock Exchange under the symbol FRAC.
The underwriters for the offering are Citigroup, Morgan Stanley, Merrill Lynch, JPMorgan, Wells Fargo, Simmons, Houlihan Lokey, Guggenheim, Scotia Howard Well and Stephens.
This is one of the largest pure-play providers of integrated well completion services in the United States, with a focus on complex, technically demanding completion solutions. Its primary service offerings include horizontal and vertical fracturing, wireline perforation and logging and engineered solutions, as well as other value-added service offerings. With approximately 944,250 hydraulic horsepower spread across 23 hydraulic fracturing fleets and 23 wireline trucks located in the Permian Basin, the Marcellus Shale/Utica Shale, the SCOOP/STACK Formation, the Bakken Formation and other active oil and gas basins, Keane provides industry-leading completion services with a strict focus on health, safety and environmental stewardship and cost-effective customer-centric solutions.
The company described its plan for the net proceeds as follows:
We intend to use the net proceeds from this offering to fully repay our existing balance of approximately $99 million under our Existing Term Loan Facility (and, in addition, approximately $16 million of prepayment premium related to such repayment), repay approximately $50 million of our Notes and to pay fees and expenses related to this offering. We intend to use any remaining proceeds for general corporate purposes, which may include the repayment of indebtedness, capital expenditures, working capital and potential acquisitions and strategic transactions.