Carlyle Is the Big IPO for This Week

Tilly's and EverBank round out the offerings

   

Last week, the IPO market was fairly subdued. Only four companies went public, and all saw losses except Envivio (NASDAQ:ENVI). Unfortunately, this week also looks like more of the same. Yet there are some deals that look interesting.

Carlyle Group

Founded over 25 years ago, Carlyle Group (NASDAQ:CG) is one of the world’s top private equity firms. It has $147 billion in assets and manages 89 funds.

But its performance has been rocky. Profits last year — which are based on a calculation called economic net income — fell 18%, to $833.1 million. The problem is that it has been tougher to sell companies as well as take them public to generate gains.

All in all, IPO investors are likely to not have much enthusiasm for Carlyle. Consider that other public offerings of private equity firms have had disappointing IPOs, including KKR (NYSE:KKR), Blackstone Group (NYSE:BX) and Apollo Global Management (NYSE:APO).

Carlyle plans to issue 30.5 million shares at a range of $23 to $25. The lead underwriters include JPMorgan (NYSE:JPM) and Citigroup (NYSE:C).

Tilly’s

Tilly’s (NYSE:TLYS) is a specialty retailer of apparel for teens and twentysomethings. The focus is on brands rooted in action sports, music and art.

There are 140 stores in 14 states, with the average footprint about 7,800 square feet. In fiscal 2011, net sales came to $400.6 million, up 20% from the prior year. Comparable-store sales were 10.7%.

The company plans to issue 8 million shares at a range of $11.50 to $13.50. The lead underwriters include Goldman Sachs (NYSE:GS), Bank of America (NYSE:BAC) and Piper Jaffray.

EverBank Financial

EverBank Financial (NYSE:EVER) is a financial services firm focused on affluent customers. The primary distribution channel is the company’s website. EVER has about 575,000 customers.

The bank is small and focuses on the Florida market. Last year net income fell 72%, to $53 million.

The company plans to issue 25.2 million shares at a price range of $12 to $14. The lead underwriters include Goldman Sachs, BofA Merrill Lynch and Credit Suisse (NYSE:CS).

Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “The Complete M&A Handbook”, “All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli or reach him via email. As of this writing, he did not own a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/ipo-playbook/carlyles-the-big-ipo-for-this-week/.

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