What a difference a year can make.
This coming week’s IPO calendar boasts 13 deals—that’s right, over a dozen—whereas a year ago, the October 2005 IPO calendar produced a grand total of 13 deals for the entire month, according to available reports.
The answer for this week’s surging IPO traffic can be found in the Nasdaq Composite Index, the barometer of the IPO market.
The Present
On October 12, 2006, the Nasdaq Index ended at 2,346.18, up 16.2 percent from 2,020.39, its 2006 closing low set on July 21.
A Year Ago
On October 12, 2005, the Nasdaq Index finished at 2,037.47, down 8.2 percent from 2,218.15, its then-2005 closing high set on August 2. The Nasdaq later recovered to set a new 2005 high at 2,273.37 on December 2.
By the way, October 12, 2005 turned out to be the Nasdaq Index’s 2005 closing low.
Today’s strong stock market has given birth to a strong IPO calendar. Consider the following:
As of Friday morning, bankers had priced six IPOs in October. This coming week, there are 13 IPOs scheduled to make their debuts, and the week of October 23 is starting to fill up. Bankers have another seven IPOs on tap.
Should everything make it out the door, October’s IPO traffic could reach 26 deals. That would make October the year’s busiest month. Until now, February had been the most active as its calendar produced 20 deals.
In a nutshell, the climate for the IPO market depends upon the winds of the Nasdaq Composite Index, and today’s IPO weather forecast is favorable.
This brings us back to this week’s new-issues traffic. There are 10 new faces on the IPO calendar, plus three carryovers and a specified-purpose acquisition company (SPAC). Counting the SPAC’s unit offering, there are 14 deals waiting in the wings to make their debuts.
Inside This Week’s IPO Calendar
Here’s the industrial sector breakdown of the deals on this coming week’s IPO calendar: A biotechnology company (BioVex Group); a business service company (ExlService Holdings); a convenience chain store operator (Susser Holdings); a defense contractor (Stanley); an insurance company (First Mercury Financial); three medical device companies (Asthmatx and LeMaitre Vascular are new faces and Ivivi Technologies is a carryover again); a natural gas limited partnership (Universal Compression Partners); three pharmaceutical companies (Trubion Pharmaceuticals is a new face, while ImaRx Therapeutics and Rosetta Genomics Ltd. are carryovers again); a SPAC (Restaurant Acquisition Partners); and a VoIP service provider (InterMetro Communications.)
Rosetta Genomics Ltd. are carryovers again); a SPAC (Restaurant Acquisition Partners); and a VoIP service provider (InterMetro Communications.)
They hope to raise about $880 million.
Company Profiles
The new faces at the IPO window
Asthmatx, a Mountain View, California-based medical device company, is developing a therapeutic treatment for asthma that delivers controlled thermal energy to the airways of adult patients to reduce the mass of airway smooth muscle. Asthmatx plans to price 5 million shares at $11 to $13 each to raise $60 million. The IPO is to start trading on Friday.
For the six months ending June 30, Asthmatx reported a net loss of $9.4 million on gross revenues of $212,000, compared with a net loss of $3.5 million on gross revenues of $147,000 for the same period a year ago.
Asthmatx
As of June 30, Asthmatx reported an accumulated deficit of $26.3 million.
Asthmatx
Formed in 2003, Asthmatx has about 40 employees.
Asthmatx
Underwriters: Piper Jaffray and Bear Stearns are the joint-lead managers. Acting as co-managers are First Albany and Jefferies.
lead managers. Acting as co-managers are First Albany and Jefferies.
Selected Principal Shareholders: Entities affiliated with Polaris Venture Partners, Menlo Ventures, MedVenture Associates, HBM BioCapital Ltd., Montreux Equity Partners, Vanguard Ventures, and Boston Scientific
52-Week Percentage Change:
Dow Jones U.S. Medical Equipment Index: down 1.38 percent
Nasdaq Composite Index: up 14.6 percent
BioVex Group, ofWoburn, Massachusetts, is a clinical-stage biotechnology company that is focusing on the development of targeted treatments for cancer and the prevention of infectious disease. BioVex plans to price 3.4 million shares at $11 to $13 each to raise $40.8 million. The IPO is to start trading on Friday.
For the three months ending June 30, BioVex Group reported a net loss of $3.5 million on no revenues, compared with a net loss of $3.1 million on revenues of $21,969 for the same period a year ago.
BioVex Group
As of June 30, BioVex Group reported an accumulated deficit of $52.1 million.
BioVex Group
Formed in 1999, BioVex Group has about 45 employees.
BioVex Group
Underwriters: Janney Montgomery Scott is the lead manager. Acting as a co-manager is Stifel Nicolaus.
lead manager. Acting as a co-manager is Stifel Nicolaus.
Selected Principal Shareholders: Funds affiliated with Merlin Biosciences, Innoven Partenaires, Credit Agricole Private Equity, Lloyds Development Capital, Scottish Equity Partners, WestLB AG, GeneChem Therapeutics Venture Fund, ABN AMRO Participaties B.V., and V-Sciences Investments Pte.
52-Week Percentage Change:
Dow Jones U.S. Biotechnology Index: up 7.23 percent
Nasdaq Composite Index: up 14.6 percent
ExlService Holdings, of New York City, is a provider of offshore BPO (business process outsourcing) services for the banking, financial services, and insurance sectors. It plans to price 5 million shares at $10 to $12 each to raise $55 million. The IPO is to start trading on Friday.
For the six months ending June 30, ExlService Holdings reported net income of $3.7 million on revenues of $46.8 million, compared with net income of $2.7 million on revenues of $35.6 million for the same period a year ago.
ExlService Holdings
Formed in 1999, ExlService Holdings has about 7,300 employees, substantially in India.
Underwriters: Citigroup and Goldman Sachs are the joint-lead managers. Acting as co-managers are Merrill Lynch and Thomas Wiesel Partners.
lead managers. Acting as co-managers are Merrill Lynch and Thomas Wiesel Partners.
Selected Principal Shareholders: Oak Hill Partnerships, FTVentures and NUI Investments Limited
52-Week Percentage Change:
Dow Jones U.S. Business Support Services Index: up 14 percent
Nasdaq Composite Index: up 14.6 percent
First Mercury Financial, of Southfield, Michigan, is a provider of insurance products and services to the specialty commercial insurance markets, such as the security industry (i.e., security guards and detectives), contractors (i.e., electricians, plumbers, and roofers) and others. It plans to price 9.7 million shares at $16 to $18 each to raise $165 million. The IPO is to start trading on Wednesday.
For the six months ending June 30, First Mercury Financial reported net income of $11.3 million on total operating revenues of $69.4 million, compared with net income of $11.9 million on total operating revenues of $57.8 million for the same period a year ago.
First Mercury Financial
Formed in 1973, First Mercury Financial has about 130 employees.
First Mercury Financial
Underwriters: JPMorgan and Keefe Bruyette & Woods are the joint-lead managers. Acting as co-managers are William Blair, Cochran Caronia Waller,Dowling & Partners,A.G. Edwards, andFerris, Baker Watts
lead managers. Acting as co-managers are William Blair, Cochran Caronia Waller,Dowling & Partners,A.G. Edwards, andFerris, Baker Watts
Selected Principal Shareholders: Glencoe Capital
52-Week Percentage Change:
Dow Jones U.S. Property and Casualty Insurance Index: 15.1 percent
Nasdaq Composite Index: up 14.6 percent
InterMetro Communications, of Simi Valley, California, is a provider of voice over Internet Protocol, or VoIP, network infrastructure. It plans to price 2.35 million shares at $7 to $8 each to raise $17.6 million. The IPO is to start trading during the week of October 16.
For the six months ending June 30, InterMetro Communications reported a net loss of $728,000 on net revenues of $9.3 million, compared with a net loss of $4.8 million on net revenues of $3.7 million for the same period a year ago.
InterMetro Communications
As of June 30, InterMetro Communications reported an accumulated deficit of $8.8 million.
InterMetro Communications
Formed in 2003, InterMetro Communications has about 38 employees.
InterMetro Communications
Underwriters: Ladenburg Thalmann is the lead manager. Acting as co-managers are Maxim Group and Wunderlich Securities.
52-Week Percentage Change:
Dow Jones U.S.Mobile Telecommunications Index: down 2.12 percent
Nasdaq Composite Index: up 14.6 percent
LeMaitre Vascular, of Burlington, Massachusetts, is a provider of medical devices to treat peripheral vascular disease. It produces disposable and implantable vascular devices used by vascular surgeons and interventionists. The company plans to price 6 million shares at $8 to $10 each to raise $54 million. The IPO is to start trading on Wednesday.
For the six months ending June 30, LeMaitre Vascular reported a net loss of $720,000 on net sales of $17.3 million, compared with net income of $56,000 on net sales of $15 million for the same period a year ago.
LeMaitre Vascular
As of June 30, LeMaitre Vascular reported an accumulated deficit of $9.4 million.
LeMaitre Vascular
Formed in 1983, LeMaitre Vascular has about 206 employees.
LeMaitre Vascular
Underwriters: Goldman Sachs is the lead manager. Acting as co-managers are CIBC World Markets, Cowen, and Thomas Wiesel Partners.
lead manager. Acting as co-managers are CIBC World Markets, Cowen, and Thomas Wiesel Partners.
Selected Principal Shareholders: Housatonic Partners
52-Week Percentage Change:
Dow Jones U.S. Medical Equipment Index: down 1.38 percent
Nasdaq Composite Index: up 14.6 percent
Restaurant Acquisition Partners, an Orlando, Florida-based specified-purpose acquisition company, or SPAC, was formed as a vehicle for the acquisition of an operating business in the restaurant industry. It plans to price 5 million units at $6 each to raise $30 million. Each unit will consist of one share of common stock and two warrants. The underwriters are Ladenburg Thalmann and Capital Growth Financial. The IPO is to trade during the week of October 16.
Stanley, of Arlington, Virginia, is an information technology services and solutions provider to U.S. defense and federal civilian government agencies. It offers services to more than 38 federal government agencies, including the Department of Defense, the Department of Health and Human Services, the Department of Homeland Security, the Department of Justice, the Department of State, the Department of Transportation, the Department of the Treasury, and NASA. Stanley plans to price 6.3 million shares at $12 to $14 each to raise $81.9 million. The company will offer 5.3 million shares and selling shareholders will offer 1 million shares. The IPO is to start trading on Wednesday.
For the three months ending June 30, Stanley reported net income of $2.5 million on revenues of $92.6 million, compared with net income of $2.4 million on revenues of $64.8 million for the same period a year ago.
Formed in 1966, Stanley has about 2,300 employees.
Underwriters: Citigroup and Wachovia are the joint-lead managers. Acting as co-managers are Raymond James, Cowen, and Stifel Nicolaus.
lead managers. Acting as co-managers are Raymond James, Cowen, and Stifel Nicolaus.
52-Week Percentage Change:
Dow Jones U.S. Computer Services Index: up 4.69 percent
Nasdaq Composite Index: up 14.6 percent
Susser Holdings, of Corpus Christi, Texas, is the operator of about 320 convenience stores in Texas and Oklahoma that offer merchandise, food service, motor fuel, and other services. The company plans to price 6 million shares at $16 to $18 each to raise $102 million. The IPO is to start trading on Friday.
For the six months ending July 2, Susser Holdings reported a net loss of $190,000 on total revenues of $1.17 billion, compared with net income of $4 million on total revenues of $859 million for the same period a year ago.
Susser Holdings
As of July 2, Susser Holdings reported an accumulated deficit of $1.8 million.
Susser Holdings
Formed in the 1930s and incorporated in 2006, Susser Holdings has about 4,035 employees.
Susser Holdings
Underwriters: Merrill Lynch is the lead manager. Acting as co-managers are JPMorgan, Jefferies, and Morgan Keegan.
lead manager. Acting as co-managers are JPMorgan, Jefferies, and Morgan Keegan.
Selected Principal Shareholders: Wellspring Capital Partners III, L.P. and affiliates
52-Week Percentage Change:
Dow Jones U.S. Specialty Retailers Index: up 16.4 percent
Nasdaq Composite Index: up 14.6 percent
Trubion Pharmaceuticals, of Seattle, is a biopharmaceutical company developing novel drugs to treat rheumatoid arthritis and systemic lupus erythematosus. Trubion plans to price 4 million shares at $13 to $15 each to raise $56 million. The IPO is to start trading on Wednesday.
Concurrent with the offering, an additional 800,000 shares will be sold to Wyeth. In December 2005, Wyeth paid $40 million to enter into a collaboration agreement with Trubion to develop worldwide commercialization of Trubion’s lead product candidate, TRU-015, and other therapeutics directed at CD20, an antigen that is a validated clinical target present on B cells.
an antigen that is a validated clinical target present on B cells.
For the six months ending June 30, Trubion Pharmaceuticals reported a net loss of $4.5 million on total revenues of $13.6 million, compared with a net loss of $8.2 million on total revenues of $127,000 for the same period a year ago.
Trubion Pharmaceuticals
As of June 30, Trubion Pharmaceuticals reported an accumulated deficit of $44.2 million.
Trubion Pharmaceuticals
Formed in 1999, Trubion Pharmaceuticals has about 72 employees.
Trubion Pharmaceuticals
Underwriters: Morgan Stanley is the lead manager. Acting as co-managers are Banc of America Securities, Pacific Growth Equities, and Lazard Capital Markets
lead manager. Acting as co-managers are Banc of America Securities, Pacific Growth Equities, and Lazard Capital Markets
Selected Principal Shareholders: ARCH Venture Partners, Frazier Healthcare Ventures, Oxford Bioscience Partners, Prospect Venture Partners II, and Venrock Associates
52-Week Percentage Change:
Dow Jones U.S. Pharmaceuticals Index: up 14 percent
Nasdaq Composite Index: up 14.6 percent
Universal Compression Partners L.P., of Houston, is a limited partnership recently formed by Universal Compression Holdings to provide natural gas contract compression services throughout the United States. It plans to price 5.5 million common units representing limited partnership interests at $19 to $21 each to raise $110 million. The IPO is to start trading on Tuesday.
Upon completion of the offering, Universal will pay an initial cash distribution of 35 cents per unit, or $1.40 per unit per year.
Universal Compression Partners L.P was formed in 2006.
Underwriters: Merrill Lynch, Lehman Brothers, and Wachovia are the joint-lead managers. Acting as co-managers are A.G. Edwards and Deutsche Bank.
lead managers. Acting as co-managers are A.G. Edwards and Deutsche Bank.
Selected Principal Shareholders: Universal Compression Holdings and UCI MLP LP LLC
52-Week Percentage Change:
Dow Jones U.S. Oil Equipment & Services Index: up 12.2 percent
Nasdaq Composite Index: up 14.6 percent
The Carryovers
ImaRx Therapeutics,ofTucson, Arizona, is a biopharmaceutical company developing therapies for vascular disorders associated with blood clots. ImaRx Therapiesplans to price 5 million shares at $10 to $12 each to raise $55 million. Underwriters: CIBC World Markets, Jefferies, and First Albany Capital. A selected principal shareholder is Edson Moore Healthcare Ventures. The IPO is now listed as “day to day.”
Ivivi Technologies, of Northvale, New Jersey, is an early-stage medical technology company developing proprietary electrotherapeutic technologies to help relieve pain, swelling, and inflammation, and to promote healing processes and tissue regeneration. Ivivi plans to price 2.5 million shares at $6 to $8 each to raise $17.5 million. The IPO is to start trading on Tuesday. Underwriters are Maxim Group and Brean Murray, Carret. A selected principal shareholder is ADM Tronics Unlimited. The IPO is now expected to trade on Tuesday.
Rosetta Genomics Ltd., of Rehovot, Israel, is a development-stage company seeking to develop and commercialize new diagnostic and therapeutic products based on a recently discovered group of genes known as microRNAs. Rosetta plans to price 3 million shares at $11 to $13 each to raise $36 million. The underwriters are C.E. Unterberg Towbin, Oppenheimer, and Maxim Group. The selected principal shareholders are Kadima Hi-Tech Ltd., Harmony 2000, Instanz Nominees Pty Ltd., and Insight Capital Ltd.The IPO is now listed as “day to day.”
Contact the writer:Editorial@RedHerring.com
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