Although February was a subpar month for
, heavy filing activity and a rebuilding calendar offered
encouraging signs for the
US IPO market
. Last week's four initial IPO filings raised February's total to
14, the second-highest total since the JOBS Act enabled
confidential filings in April 2012 and the highest total since
August 2012. Three companies set terms, ending a three-week dry
spell, and the first pricings since February 14 are expected next
Asset manager Artisan Partners sets terms
On Tuesday, equities-focused investment manager Artisan Partners
Asset Management (
) set terms for a $322 million IPO. In 2012, its assets under
managements increased 30% to $74 billion, and revenue increased
11% to $506 million. The company previously attempted to go
public in 2011. The last equities-only investment company to set
terms, Silvercrest Asset Management Group ($11 billion AUM),
withdrew its $55 million offering in November 2012. Private
equity firm Hellman & Friedman purchased a minority stake in
2006. Citi and Goldman Sachs are the joint bookrunners.
Long-anticipated IPO from Silver Spring Networks
Silver Spring Networks (
), which provides smart grid products and services to utilities,
also set terms last week for a $63 million IPO. The company,
which first filed in July 2011, is the market leader in the US,
and it ended 2012 with a backlog of $745 million. Venture capital
firms Foundation Capital and Kleiner Perkins will own 28% and 13%
of post-IPO shares, respectively. Goldman Sachs and Credit Suisse
are the joint bookrunners; Morgan Stanley was dropped as lead
bookrunner in January.
HF2 Financial Management (
), a blank check company formed to acquire a financial services
company, set terms for a $153 million IPO. In 2006, the company's
management team led the $47 million IPO of Highbury Financial,
which was acquired by Affiliated Managers Group (
) in 2010. EarlyBird Capital is the sole bookrunner on the deal.
Four companies added to the pipeline
Masonite International (
), a leading global designer and manufacturer of doors, filed to
raise $150 million. The Canadian company, which filed for
bankruptcy in 2009, sold approximately 31 million doors in 2012,
mostly in North America. Backers include Oaktree Capital (OAK),
Mount Kellett Capital Management and Centerbridge Partners.
Deutsche Bank, Barclays and BofA Merrill Lynch are the joint
KNOT Offshore Partners LP (KNOP), a recently formed LP that will
own, operate and acquire shuttle tankers under long-term
charters, filed to raise $100 million. The company's initial
fleet will consist of four tankers contributed by Knutsen NYK
Offshore Tankers, and it will have an option to purchase four
additional tankers. BofA Merrill Lynch and Citi are the joint
Independent Bank Group (IBTX), which has 30 banking offices in
the Dallas-Fort Worth, TX area, filed for a $92 million IPO. The
last regional bank to go public, ConnectOne Bancorp (CNOB),
raised $45 million on February 11, 2013 and is up 4% from its
offer price. Sandler O'Neill, Evercore Partners and Keefe
Bruyette Woods are the joint bookrunners.
RCS Capital (RCAP), a newly organized wholesale broker-dealer,
filed to raise $86 million. The company holds a leading position
in the real estate direct investment program industry, with a 28%
market share measured by equity raised. Ladenburg Thalmann and
Realty Capital Securities are the joint bookrunners.
Active US IPO pipeline still holds more than 50
US IPO pipeline
now consists of 113 companies looking to raise $31 billion. Just
under half have released updates within the past six months, and
35 companies have released updated filings since February 1.
Recent filers include Aviv REIT (AVIV) and Fairway Group (FWM),
both of which released financial results through 2012 last week.
Mixed performance in February
February's eight deals (vs. 12 in January) were mostly small
(seven raised less than $125 million) and had mixed performance.
Three deals traded up more than 25%, but three others ended the
month below their offer prices. Half of the deals had negative
aftermarket returns, and the average aftermarket return of -2%
(vs. 1% year-to-date) trailed the major indicies. The average
total return for the month was 12% (vs. 14% YTD).