Six IPOs Debut on Friday as January Effect Signals Rough Waters
Friday is a strange day in the markets. The month of January is closing out with the first monthly January loss in three years, after a huge 2013 of course. Yet there were six initial public offerings on the last day of the month.
24/7 Wall St. grouped the three biotech IPOs together, and then there are three other IPOs to consider. Note that six IPOs in one trading day is more active than close to 99% of trading days.
One IPO is a ski resort owner, one is a sports boat maker and one is almost hard to believe if you think the economy is still bad — a California homebuilder.
Intrawest Resorts Holdings Inc. (NYSE: SNOW) priced some 15.625 million shares at $12.00 per share. This was handily lower than the $15.00 to $17.00 range. We would also point out that some 3.125 million were sold on behalf of the company. The remaining 12.5 million shares were sold by Fortress investment Group LLC (NYSE: FIG). We also saw that the overallotment option of 2,343,750 shares of common stock was from the selling shareholder as well. Goldman Sachs, Credit Suisse, Deutsche Bank and Bank of America Merrill Lynch were the joint book-runners. JMP Securities, KeyBanc Capital Markets and Stephens were listed as co-managers. Intrawest’s mountain resorts include Steamboat Ski and Resort, Winter Park Resort, Mont Tremblant, Blue Mountain, Stratton Mountain and Snowshoe Mountain. Intrawest opened at $11.11, and shares were down 8% at $11.00 as of 10:30 a.m.
Malibu Boats Inc. (NASDAQ: MBUU) priced 7.142 million shares at $14.00 per share, in the mid-point of the $13.00 to $15.00 range. Some 6,743,744 shares were sold by the company, with the remaining from holders. Raymond James and Wells Fargo were the book-runners, and SunTrust Robinson Humphrey and BMO Capital Markets were the co-managers. Malibu Boats is said to have the number one market share position in the United States since 2010. Its two brands of performance sport boats are Malibu and Axis Wake Research.
The New Home Company (NYSE: NWHM) is at an underwhelming price of $11 per share for 7.812 million shares. The company is focused on building new homes in major metropolitan areas in California. This was supposed to price $15.00 to $17.00. The company plans on using the net proceeds for the acquisition of land, development of lots, home construction and other related purposes. Citigroup, J.P. Morgan and Credit Suisse were the joint book-runners. Shares opened at $11.50 and were at $11.97 as of 10:30 a.m.