IPOs are back! Well, at least for the next couple weeks, until the holidays get into full gear.
Several of this week’s deals are expected to be fairly large, such as the IPOs for Aramark and Hilton. For the most part, they should catch the interest of institutional investors looking for IPO opportunities.
So let’s take a look at the full calendar:
The company is one of the largest providers of food services and uniforms. But growth has been slow: For the fiscal year ended Sept. 27, revenues came to $13.9 billion, barely up from $13.5 billion. Growth issues might not weigh on the IPO, however, thanks to the company’s strong cash generation. During the past fiscal year, cash flows came to $1.2 billion.
Back in 2007, ARMK pulled off a going-private transaction for $8.3 billion. The private equity sponsors included GS Capital Partners, CCMP Capital Advisors, JPMorgan Partners, Thomas H. Lee Partners and Warburg Pincus LLC. No doubt, the sponsors are eager to get liquidity on their investment.
ARMK expects to issue 36.3 million shares at a range of $20 to $23, and the underwriters include Goldman Sachs (GS), J.P. Morgan (JPM), Credit Suisse (CS), Morgan Stanley (MS), Barclays (BCS), BofA Merrill Lynch (BAC), RBC Capital Markets and Wells Fargo Securities (WFC).
Kindred Biosciences (KIN)
This is a development-stage biotech operator that is focused on treatments for pets. The basic concept is to take drugs that have worked to humans and apply them to dogs, cats and horses.
The CEO and co-founder of KIN is Richard Chin, M.D., who was previously the Head of Clinical Research for the Biotherapeutics Unit at Genentech. While there, he oversaw Phase I through Phase IV clinical trials for all the company’s drugs except for oncology. The company’s lead candidate is CereKin, which targets osteoarthritis pain and inflammation in dogs. Other drugs include AtoKin (atopic dermatitis in dogs) and SentiKin (post-operative pain in dogs).
KIN plans to issue 5.8 million shares at a range of $6 to $8, and the lead underwriters include BMO Capital Markets and Guggenheim Securities.
Fidelity & Guaranty Life (FGL)
Founded more than 50 years ago, the company provides life insurance, annuities and other retiremenet products to roughly 700,000 middle-class American policyholders. To provide more competitive returns, the company primarily sells products that are tied to the performance of the S&P.
For the year ended Sept. 30, 2013, revenues came to $1.35 billion, up from $1.2 billion in the same period a year ago. Net income rose from $344.1 million to $347.7 million.
FGL plans to issue 9.8 million shares at a range of $17 to $19, and the lead underwriters include Credit Suisse, J.P. Morgan, Jefferies, Macquarie Capital and RBC Capital Markets.
The company is the top online destination for auto consumers in China. One key to its success is the production of professional content, which includes an average of 600 articles, 1,200 photos and 10 video clips each day. In all, the library has profiles on more than 15,000 vehicle model configurations.
Autohome has certainly benefited from the growth of the Chinese market. From 2010 to 2012, revenues grew at a 70.2% compound annul rate to $119.7 million. The company also has been able to post strong profits, including $54.5 million for the first nine months of this year.
ATHM plans to offer 7.8 million shares at a range of $12 to $14. The lead underwriters include Deutsche Bank (DB) and Goldman Sachs.
CatchMark Timber Trust (CTT)
This is a real estate investment trust (REIT) that invests in timberlands in the US. The company currently has interests in 280,000 acres of land in locations like Alabama and Georgia.
However, the business is volatile. For the first nine months of 2013, revenues came to $24.5 million, which was down from $35.1 million in the same period a year ago. The drop was due primarily to a decline in harvest volumes.
CTT is looking to sell 10.5 million shares at a range of $13.50 to $15.00, and the lead underwriters include Raymond James, Baird and Stifel.