Four companies are slated to hit the exchanges this week — a bit of a slowdown from previous weeks, but still continuing a bustling time for the IPO market. Wall Street has launched 22 offerings in May alone — representing the best volume since 2007 — though investors have looked at these deals with mixed enthusiasm.
Case in point, last week’s IPO returns:
|William Lyon Homes||WLH||$25.00||+6%|
|Trade Street Residential||TSRE||$10.00||-7%|
Still, you can expect more deals in the offing. Eight more companies are lined up to go public in May, which according to Renaissance Capital, means this month “could be the first since May 2007 to see 30 pricings. No month has had more than 30 IPO pricings since October 2004.”
Here are the companies planning to come public this week:
ChannelAdvisor (ECOM) operates a cloud platform that helps customers manage their e-commerce operations, such as with inventory, price optimization, online search and data analytics. The system integrates with the top players like eBay (EBAY), Amazon (AMZN) and Google (GOOG), as well as social media sites like Facebook (FB).
ECOM currently boasts more than 2,000 customers, which include biggies like Sony (SNE), Under Armour (UA) and Ann Taylor. Last year, ECOM processed $3.5 billion in gross merchandise sales and managed more than 100 million stock-keeping units (SKUs).
From 2010 to 2012, revenues improved from $36.7 million to $53.6 million, but ChannelAdvisor has been unable to turn a profit, with net losses reaching $4.9 million in 2012.
ECOM plans to issue 5.8 million shares at a range of $12 to $14. Lead underwriters include Goldman Sachs (GS) and Stifel Nicolaus.
Constellium (CSTM) is a leading designer and manufacturer of specialty rolled and extruded aluminum products, with a focus on aerospace, packaging and automotive end-markets.
From 2010 to 2012, revenues ticked up from 2.96 billion euros to 3.6 billion euros, and adjusted EBITDA grew from 48 million euros to 228 euros.
Global Brass and Copper
Global Brass and Copper (BRSS) is a value-added converter, fabricator, distributor and processor of specialized copper and brass products in North America. Under the brands of Olin Brass, Chase Brass and A.J. Oster, the company makes such things as sheet, strip, foil, rod, tube and fabricated metal component products.
However, growth has not been easy. Sales have been flat — at about $1.65 billion — since 2010, and the same is true for the company’s $90.5 million in operating income.
BRSS plans to issue 9.4 million shares at a range of $15 to $17. Lead underwriters include Goldman Sachs and Morgan Stanley (MS).
Ply Gem (PGEM) is a top manufacturer of exterior building products like siding, fencing, windows and doors. The products are used for both new construction as well as home repair and remodeling projects — in other words, Ply Gem is yet another new play coming on the rebound of the U.S. real estate market.
However, Ply Gem’s growth has been fairly moderate. Last year, sales came to $1.12 billion — up about 8% year-over-year — and operating income improved about 5% to $174.2 million. Thus, investor enthusiasm might be a bit muted.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.