The two IPOs that will begin trading today both priced above
their expected ranges, despite being from very different
, which designs premium travel and business luggage, briefcases
and accessories, priced its 18.8 million share IPO at $18, above
the $15-$17 range. At the offer price, Tumi commands a market
value of $1.2 billion. Tumi is set to list on the NYSE under the
symbol TUMI on Thursday. Goldman Sachs, Credit Suisse and
JPMorgan were the bookrunners on the offering.
Tumi Holdings, which was founded in 1975, booked $330 million in
sales in 2011. First quarter 2012 revenues are up 21% and gross
margin rose to 57%. The company was acquired by private equity
firm Doughty Hanson from Oaktree Capital in 2004.
priced its 13.5 million share IPO at $17, well above the revised
$11-$13 range. The company had originally been seeking a price
between $8 and $10, resulting in an offer price 89% above the
midpoint of the original price range. The stock is expected to
list on the NASDAQ under the symbol SPLK on Thursday. Morgan
Stanley, Credit Suisse, JPMorgan and BofA Merrill Lynch were the
lead underwriters on the deal.
Splunk allows enterprises to take control of machine-generated
data, which traditional database management systems have
difficulty handling. Its software indexes unstructured data so
that it can be monitored, analyzed and searched. Among its 3,700
customers are a number of industry leaders, including AT&T,
Bank of America, Facebook, IBM and Visa. Splunk saw its orders
increase 67% in FY12, helping sales grow 83% to $121 million
(following 89% growth in FY11). Despite gross margin of 90%,
Splunk remained unprofitable, with an adjusted net loss of $5
million. The company also face competition from larger tech
players like HP, Microsoft and Oracle. However, it seems unlikely
that investors have had their fill of enterprise software IPOs
Recently priced IPOs
such as ExactTarget gained 32% in its first day of trading last
month, while Guidewire (total return 124%), Demandware (69%),
Bazaarvoice (68%) and Brightcove (60%) have seen continued growth
in the aftermarket.
Two other enterprise software companies are also on the
for this week. Infoblox, which provides appliances and software
to enable next-generation data centers, and Proofpoint, which
provides on-demand data protection solutions to large and
mid-sized organizations, are planning to raise $98 million and
$68 million, respectively.
IPO returns have been strong so far this year. The
FTSE Renaissance US IPO Index
is up 16% year-to-date.