US IPO Recap: July calendar heats up as 13 companies set terms

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The US IPO Calendar  is filling up for the end of July, as 13 companies set terms last week; all 13 are scheduled to price by the end of the month. Deals setting terms last week included digital coupon marketplace RetailMeNot ( SALE ), vacation club Diamond Resorts ( DRII ), five health care companies (including four biotechs), and two yield-plays from energy company NRG Yield ( NYLD ) and industrial properties REIT Rexford Industrial Realty ( REXR ). Five companies submitted initial filings, including two members of our Private Company Watchlist, Cvent (CVT) and ClubCorp (TEE.RC).

IPOs setting terms (week of July 8, 2013)
Company (Ticker) Business Deal Size ($mm) LTM Sales ($mm)
Agios Pharmaceuticals (AGIO) Pre-clinical cancer biotech $75 $25
Cellular Dynamics Int'l (ICEL) Human cell manufacturer $50 $8
Conatus Pharmaceuticals (CNAT) Liver disease biotech $55 $0
Diamond Resorts Int'l ( DRII ) Timeshare company $264 $568
Graña y Montero (GRAM) Peru-based engineering & construction $350 $2,086
Jones Energy (JONE) Oil and gas company $252 $162
Liquid Holdings Group (LIQD) Financial services software $50 $4
NRG Yield ( NYLD ) Energy infrastructure assets $392 $184
OncoMed Pharmaceuticals (OMED) Cancer treatment biotech $60 $25
Onconova Therapeutics (ONTX) Cancer treatment biotech $60 $47
RetailMeNot ( SALE ) Digital coupon marketplace $191 $156
Rexford Industrial Realty ( REXR ) Industrial properties REIT $224 $35
UCP (UCP) California homebuilder $124 $66

Yield-plays and health care companies dominate upcoming IPOs
Thirteen companies, which are looking to raise a combined $2.1 billion, set terms last week and expect to price before the end of July. NRG Yield, a company formed to operate certain infrastructure assets of NRG Energy, which is one of the largest power generation and retail electricity businesses in the US, launched the largest deal of the group. The company would raise $392 million at the midpoint of its price range. Another yield-play, Rexford Industrial Realty, a REIT that operates industrial properties in California, filed to raise $224 million.

Additionally, five health care companies set terms, four of which were biotechs hoping to ride the wave of recent biotech success. Fifteen of the sixteen biotech IPOs in 2013 have gained more than 10% from their offer prices, and the average return for the group is 57%. The new biotech deals included OncoMed (OMED), which has collaboration agreements potentially worth over $1 billion with GlaxoSmithKline and Bayer, and Agios Pharmaceuticals (AGIO), a pre-clinical cancer biotech that has received over $141 million in collaboration revenue from Celgene.


New IPO filers (week of July 8, 2013)
Company (Ticker) Business Deal Size ($mm) LTM Sales ($mm)
Intrexon (XON)
Synthetic biology technologies
 $125  $16
Fox Factory Holding (FOXF)
High-performance suspension products
$120
$245
OCI Resources LP (OCIR)
Trona ore & soda ash production
$115
$453
ClubCorp (TEE.RC)
Golf & country clubs
$100
$760
Cvent (CVT)
Event management software
$100
$90

Diverse group of five companies added to the pipeline
Five companies, all with proposed deal sizes of close to $100 million, made initial filings last week. Two were private-equity backed: ClubCorp (TEE.RC) was acquired by KSL Capital Partners and the Robert Dedman family for $1.8 billion in 2006. The company owns 151 clubs (mostly golf and country clubs) with 350,000 members in 23 states, Mexico and China. Fox Factory (FOXF) was acquired by Compass Diversified Holdings ( CODI ) in 2008 at a valuation of $85 million. The company designs and manufacturers suspension products for various on- and off-road vehicles. One major customer, BRP, is up 24% since raising $254 million in an IPO in Canada in May. Also filing was Cvent (CVT), a fast-growing software provider backed by Insight Venture Partners and New Enterprise Associates. Cvent sells cloud-based event management software to 6,200 customers, including Merck, Visa, Walmart and Wellpoint Health Networks.

IPO market snapshot
The 92 IPOs in 2013 have raised $20.6 billion and produced an average return of 30%. There have been 54 IPOs in the past 90 days, with total proceeds of $11.4 billion and an average return of 30%. The active IPO pipeline includes 122 companies looking to raise $34.1 billion.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: News Headlines , IPOs

Referenced Stocks: CODI , DRII , NYLD , REXR , SALE

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