IPO Week Ahead: GE Spins Out Synchrony in a Whirl of 22 IPOs
We have counted 22 initial public offerings (IPOs) on the schedule for this week, including just two holdovers from last week. Of the dozen companies that actually made it to the markets last week, Friday’s IPO of El Pollo Loco Holdings Inc. (NASDAQ: LOCO) led the charge, going out at $15 and closing the day at $24.03, up 60%.
This week’s most closely watched IPO will be General Electric Co.’s (NYSE: GE) spin-off of its North American financial business into a new company called Synchrony Financial. GE plans to offer 125 million shares in Synchrony at an IPO price of $23 to $26. The IPO shares represent a stake of 15% in the company and is expected to raise $3 billion in gross proceeds, valuing the new company at around $20 billion. Joint book-running managers are Goldman Sachs & Co., J.P. Morgan, Citigroup, Morgan Stanley, Barclays, Bank of America Merrill Lynch, Credit Suisse and Deutsche Bank Securities. The underwriters have an option on an additional 18.75 million shares. Shares are expected to price on Wednesday and begin trading Thursday on the New York Stock Exchange (NYSE) under the ticker symbol SYF.
A second large IPO is planned by medical delivery technology firm Catalent Inc. which plans to offer 42.5 million shares of common stock in a price range of $19 to $22. The company expects to raise around $871 million in the IPO. Shares are expected to price on Wednesday and begin trading Thursday on the NYSE under the ticker symbol CTLT.
Another IPO looking at a big payday is Mobileye N.V., which designs and develops software and other technologies for advanced driver assistance systems, one of the major building blocks of driverless cars, or as some now call it “autonomous driving.” The Israel-based company plans to offer 27.8 million shares in an IPO price range of $17 to $19, raising a total of nearly $500 million. The shares are set to price on Thursday and begin trading Friday on the NYSE under the ticker symbol MBLY.