Can IPOs Recover With the Market? (CHRM, AOSL, MITL, GGS, MUSA, MERU, CALX, AVEO, PRI, FNGN, HTHT)

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The good news is that many of these post-IPO losers are actually popping back up now that the markets overseas are pulling us up.  The bad news is that this latest downdraft in the market over the last week and more has taken the sizzle and cooled he heat on what was starting to be a hot IPO market again.

Since coming public, some of the big losers have been Charm Communications Inc. (NASDAQ: CHRM), Alpha & Omega Semiconductor (NASDAQ: AOSL), Mitel Networks Corp. (NASDAQ: MITL), Global Geophysical Services (NYSE: GGS), Metals USA Holdings (NYSE: MUSA), Meru Networks Inc. (NASDAQ: MERU), Calix Networks Inc. (NYSE: CALX), and Aveo Pharmaceuticals (NASDAQ: AVEO).  We do still have three winners in IPO-land: Primerica Inc. (NYSE: PRI), Financial Engines Inc. (NASDAQ: FNGN) and China Lodging Group (NASDAQ: HTHT).

Many Losers Post-IPO

Charm Communications Inc. (NASDAQ: CHRM) in advertising came public at $9.50 on May 4 and is down over 5% at $9.00.

Alpha & Omega Semiconductor (NASDAQ: AOSL) in chip equipment came public at $18.00 on April 28 and shares are down almost 19.5% at $14.50.

Mitel Networks Corp. (NASDAQ: MITL) in telecom services came public at $14.00 on April 21 and shares are down over 21% at $10.96.

Global Geophysical Services (NYSE: GGS) in oil and gas field services came public at $12.00 on April 21 and shares are down over 24% at $9.04.

Metals USA Holdings (NYSE: MUSA), a metals processing and fabrication company, came public at $21.00 on April 8 and shares are down about 28.5% at $15.02.

Tengion Inc. (NASDAQ: TNGN) is hard to count because of price, but this medical-genetics company came public at $5.00 on April 8 and shares are down 27% at $3.65.

Meru Networks Inc. (NASDAQ: MERU) was hot at the IPO (for as much as a 30% gain in the first day and headed south since.  The networking solutions company came public at $15.00 and is now down 7.8% at $13.83.

Calix Networks Inc. (NYSE: CALX) in telecom equipment came public at $13.00 on March 23, and shares are down 20% at $10.40.

Aveo Pharmaceuticals (NASDAQ: AVEO), a biotech, came public at $9.00 on March 12 and is now down over 13% at $7.82.

Winners still are as follows:

The biggest winner is Primerica Inc. (NYSE: PRI) as it came public at $15.00 on April 1 and is up 62% at $24.32… No April Fools joke on Primerica.

Financial Engines Inc. (NASDAQ: FNGN) is one of the top winners as it came public at $12.00 on March 16 and shares are up over 29% at $15.52.

China Lodging Group (NASDAQ: HTHT) is up over 16% after pricing at $12.25 on March 25.

There have been several new filings as well:

HCA, the largest non-government domestic hospital operator, filed on Friday mnorning after days and weeks of it being expected.  It plans to raise some $4.6 billion in an IPO, and the underwriting group is huge with 3 joint book-runners and 6 co-managers.  This has been public before after being acquired by private equity.  Shares sales will be for the company and for holders and the company proceeds will be used to pay down the massive $26+ billion debt load.  Owners now are founder Tom Frist (actually the Frists), Bain, KKR, and affiliates of BofA-Merrill Lynch.

Dragon Acquisition Corporation, a real estate development company located in Qingdao, Shandong province, China, plans to list under “OMEI” on NASDAQ in a primary and secondary offering of about $47 million (or up to).

Goodman Global Group, Inc. is a Houston-based domestic manufacturer of heating, ventilation and air conditioning HVAC products for residential and light commercial use. The company filed to sell up to $500 million in stock on the NASDAQ but no ticker was assigned.

After the Crash, IPO Market Possible Delays

  • Madison Square Capital, a REIT
  • Ryerson, a metals processor
  • Smile Brands, a dental offices servicer
  • MIE, a Chinese E&P oil entity appears delayed as well.

Some still in the hopper are as follows:

  • Wave2Wave Communications, a company in networking and hosting and communications;
  • JinkoSolar Holdings Co. (NYSE: JKS), a China-based solar modules company, is still on deck.
  • GameFly as “GFLY” listed that it is still planning to come public with a sale of up to $50 million in stock in an amended filing this last week from the video-game rental service.

Stay tuned.  It is going to be interesting to see if these IPOs can get back on track and if the post-IPO market losers that were supposed to be solid IPOs can rgain their mojo.

JON C. OGG