Just 2 IPOs Are Coming This Week

A social media play from China and an energy play from Texas

   

It looks like the IPO market may end on a grim note for 2012. Over the past two weeks, only one deal came out — and it was a mess. Ruckus Wireless (NYSE:RKUS), a provider of Wi-Fi services, plunged 18% on Friday.

For this shortened Thanksgiving holiday week, only two deals are planned. Unfortunately, they’ll probably also face skeptical investors:

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Here’s a look:

YY (NASDAQ:YY): The company operates a social media platform in China. Services include real-time voice, text and video. Since its launch in July 2008, YY has grown at a torrid rate, reaching 400.5 million registered users. This represents about 84.2% of the market, according to iResearch Report.

For the first nine months of 2012, revenues spiked by 168% to $88 million. But there was a net loss of $13.2 million.

Because of various scandals, Chinese IPO activity in the U.S. has slowed considerably over the past couple years. In fact, just two deals have come out so far in 2012.

YY plans to issue 7.8 million shares at a range of $10.50 to $12.50. The lead underwriters include Morgan Stanley (NYSE:MS), Deutsche Bank (NYSE:DB) and Citi (NYSE:C).

Alon USA Partners (NYSE:ALDW): This is a master limited partnership (MLP) that owns and operates a crude oil refinery in Big Spring, Texas, which has a capacity of 70,000 barrels per day. The company markets the oil in West Texas, Central Texas, Oklahoma, New Mexico and Arizona through a wholesale distribution network and Alon Energy’s retail convenience stores.

For the first nine months of 2012, revenues went from $2.7 billion to $3.2 billion. For the current year, EBITDA came to $262.8 million.

Alon Energy plans to issue 10 million shares at a range of $19 to $21. The lead underwriters include Goldman Sachs (NYSE:GS), Credit Suisse (NYSE:CS) and Citi.


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