Jun 28, 2012, 11:29 am EDT
The Facebook (NASDAQ:FB) debacle has put a freeze on IPOs not only in the U.S. but also globally. Still, it now looks as though the environment is getting better.
The shares of Felda Global Ventures, which went public last night in Malaysia, was up 16% by the end of trading. In all, the company raised $3.1 billion. The lead underwriters included CIMB Investment Bank, Maybank Investment Bank and Morgan Stanley (NYSE:MS).
Felda is a massive producer of palm oil, with 880,000 acres of plantations in Malaysia. Basically, the IPO is part of the country’s privatization process. With the proceeds from the offering, the government will get 55% of the cash, with the remaining sum going to fund operations. The palm oil business has been growing at a very nice pace. Read
Jun 27, 2012, 2:41 pm EDT
Ahead of Tuesday’s big event from Zynga (NASDAQ:ZNGA) — called “Zynga Unleashed” — investors piled into the stock in anticipation of some big needle-moving news. But unfortunately, not much of substance was unleashed. As a result, the stock gapped down from $6.16 to $5.58 on Wednesday afternoon.
So, to get the excitement back, Zynga really needs to do something bold. That means something like getting serious about online gambling.
It’s true that Zynga has had a meteoric rise. Founded just five years ago, the company is now a powerhouse in social gaming, with over $1 billion in revenues. A key part of the strategy has been the development of a sophisticated analytics system. Essentially, it constantly changes games to better maximize players’ experience and Zynga’s revenue opportunities. Read
Jun 27, 2012, 1:41 pm EDT
EQT Midstream Partners (NYSE:EQM), a natural-gas pipeline operator, went public today — the first IPO since Facebook‘s (NASDAQ:FB) back on May 18.
EQT’s deal was priced at $21, at the top of the expected $19-to-$21 range. And so far in today’s trading, the shares are up almost 13%.
All in all, EQT is a solid operator. The company produces healthy cash flows, which means the dividend yield is attractive — currently about 6%. Read
Jun 27, 2012, 1:08 pm EDT
It’s been 40 days since Facebook’s (NASDAQ:FB) IPO, and this means the company’s 33 underwriters are legally allowed to put out research on the stock (that’s because the “quiet period” has expired). Unfortunately, the consensus is a bit muted. And so far in today’s trading, Facebook’s shares are off by about 1% to $32.70, and still down some 14% from its $38 IPO price.
True, the analysts think the company is a standout operator. With over 900 million users across the world, it has tremendous potential for becoming an incredibly valuable platform for advertisers.
However, the analysts also pointed out that Facebook must deal with the transition to mobile traffic. While this is positive for the long term, it will probably mean a deceleration in revenue for the next year or so. The reason: Budgets for mobile advertising are still in the nascent stages. Read
Jun 27, 2012, 7:30 am EDT
In the second quarter, it seemed like Facebook (NASDAQ:FB) was the only IPO. While it certainly garnered tremendous buzz — across the globe — the deal turned out to be a dud. Even with FB’s recent rally, the stock is still off 14% from its offering price.
Yet, Facebook wasn’t the only story for the second quarter. If anything, the period had some interesting deals. The second quarter saw 24 transactions with an average return of 8.24%.
Among the group, the worst performer was PetroLogistics (NYSE:PDH), operator of the world’s largest propane dehydrogenation facilities. Unfortunately, the deal blew up, with a return of -38%. It was a tell-tale sign when 96% of the company’s insiders unloaded shares in the IPO. Read
Jun 25, 2012, 2:46 pm EDT
Since the Facebook (NASDAQ:FB) IPO, the U.S. markets have seen no new initial public offerings. But this week, five deals are on the calendar. However, most look fairly lackluster.
One of the deals planned is EQT Midstream Partners (NYSE:EQM). The company operates pipelines for natural gas, primarily in the Appalachian Basin. Interestingly enough, EQT may actually get traction. The company’s business is stable and has high barriers to entry. Besides, it will be attractive for investors looking for a dividend yield.
Yet some of the other IPOs look iffy. For example, Tesaro (NASDAQ:TSRO) is a biotech company that’s developing drugs to deal with the after-effects of chemotherapy. However, such deals have had a tough time over the past year. Plus, Tesaro’s revenues are zero. Read