After several companies set terms last week, the
US IPO Calendar
is packed for the week of March 18. Nine deals are
scheduled to price, which would mark the busiest week since the
week of October 8, 2012. The companies that set terms last week
include nursing facility REIT Aviv (
), on-demand ad management firm Marin Software (
), conferencing and call center provider West Corporation (
), mortgage REIT Five Oaks Investment (
) and diagnostic tests company Cancer Genetics (
), which has struggled to complete its offering over the past
several months. Pinnacle Foods (PF) also set terms, but is not
expected to price until the following week.
This aforementioned group will join a quartet of deals already on
the calendar, including blank check company HF2 Financial
management (HTWO), revenue management solutions provider Model N
(MODN) and biotechs Tetraphase Pharmaceuticals (TTPH) and
Enanta Pharmaceuticals (ENTA).
Silver Spring Networks rises 29% in first-day trading
after pricing upsized IPO
Silver Spring, a leading provider of smart grid products and
services to utilities, saw its shares rise 29% on its first day
of trading, the fourth best first day pop thus far in 2013.
The company raised $81 million by offering 4.75 million
shares at $17 after originally filing to offer 3.7 million shares
in a deal that would have raised $63 million. Though the company
is in its early stages of profitability, investors were likely
attracted to its leading position in AMI, blue chip customer
base, substantial backlog of $745 million and an addressable
market that is expected to reach $19.5 billion by 2015 (23%
CAGR). Silver Spring only offered 10% of its market cap after
originally proposing a $150 million deal size in its initial
filings, which could have contributed to its substantial first
West Corporation and Pinnacle Foods seek to join group of
successful LBO exits
West Corporation, which is a leading conferencing and call center
provider LBO'd by Thomas H. Lee and Quadrangle, announced plans
to raise $500 million by offering 21.3 million shares at a price
range of $22 to $25. At the midpoint of the proposed range, West
Corporation would command a fully diluted market value of $1.95
Pinnacle Foods, which is a leading packaged foods company backed
by Blackstone, proposed a deal to raise $551 million by offering
29 million shares at a price range of $18 to $20. At the midpoint
of the proposed range, Pinnacle Foods would command a fully
diluted market value of $2.1 billion. The two companies would
become the third and fourth largest IPOs of the year, behind
Zoetis (ZTS, $2.2 billion) and CVR Refining (CVRR, $600 million).
Pinnacle and West Corp will attempt to replicate the performance
of other 2013 LBOs, which have been among the best performing
deals of the year. Aside from 3D printing company ExOne (XONE),
the top IPO return year-to-date (up 71%), the next three
best-performing deals are all LBOs. Apollo-backed Norwegian
Cruise Line (NCLH) is up 58%, Madison Dearborn-backed Boise
Cascade Company (BCC) is up 51% and Bain-backed Bright Horizons
Family Solutions (BFAM) is up 50%. All three of those deals
priced above the high end of their respective proposed ranges.
Rally Software and Omthera Pharmaceuticals added to the
Omthera Pharmaceuticals (OMTH), which is developing therapies for
abnormalities in blood lipids, filed for a deal that could raise
$75 million. Notable backers include Sofinnova Ventures (39%
pre-IPO stake) and New Enterprise Associates (30%). The company
has yet to generate revenue.
Rally Software (RALY), which provides an application lifecycle
management platform for enterprise developers, filed for a deal
that could raise $70 million. It initially filed confidentially
in December 2012, though it had been on the Private Company
Backlog since June 2012. Notable backers include Boulder
Ventures (20% pre-IPO stake), Mobius Technology Ventures (20%),
MDV (19%) and Greylock (9%).
Pipeline updates suggest large deals around the
Evertec (EVTC) updated financials for the 2012 fiscal year.
Revenues increased 6% to $342 million as a result of volume
growth. Adjusted EBITDA grew 14% to $170 million. The company has
chosen to list on the NYSE. Hannon Armstrong (HASIC), a
structured REIT that provides financing for clean energy
projects, also announced plans to list on the NYSE. Intelsat (I),
which originally filed with a deal size of $1.75 billion, reduced
its proposed offering size to $750 million in its latest filling.
There are several large deals that are expected to launch in the
coming weeks. Among them, grocery store chain Fairway Market
(FWM) expects to launch in the first week of
April and homebuilder Taylor Morrison Homes
(TMHC) could launch its deal in the coming days. Empire
State Building voters have been in support of its pending IPO,
which could push the deal forward. Theme park operator
Seaworld (SEAS) and fragrance and cosmetics company Coty (COTY),
which recently updated financials, may also be imminent. With the
exception of Fairway Market (expected $173 million deal size),
each of these deals is expected to raise over $500 million.
The current US Pipeline holds 112 companies expecting
to raise $29.9 billion.