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Just One IPO On Deck … But Companies Keep Filing

The IPO market should rev up again next week


The Fourth of July tends to quiet the IPO market — last week saw zero deals, and this week, our only action will come from Regado Biosciences (RGDO) is expected to pull off a deal.

Even then, we should note that the company has been trying to do so for the past few weeks, so whether it will actually go public is anyone’s guess.

Despite the slow activity for IPOs, Wall Street has still been cranking out filings. So here are some of the interesting ones from last week:

Santander Consumer USA Holdings

Santander Consumer USA Holdings is a division of Banco Santander (SAN), a Spanish mega-bank. SCUSA focuses on vehicle finance and unsecured consumer lending products. To deal with the credit risks, the company has developed a sophisticated proprietary software system to score loans — and it’s working. Every year for the past decade, SCUSA has been profitable; in fact, from 2008 to 2012, net income grew from $174.1 million to $734.9 million.

Santander Consumer USA did not announce a listing exchange or ticker.

MiX Telematics

Founded in 1996, MiX Telematics operates a cloud-based platform to manage fleets. The platform helps users reduce fuel costs, meet regulatory requirements and even mitigate theft. In fiscal 2013, revenues came to $74.2 million (up nearly 19%) and profits rose by 24.4% to $13.9 million. Customers include Baker Hughes (BHI), Bechtel Corp., Chevron (CVX), PepsiCo (PEP) and Schlumberger (SLB).

MiX Telematics will trade as MIXT on the New York Stock Exchange.


Control4 develops home automation systems, which manage things like music, video, lighting, temperature and security. From 2010 to 2012, revenues went from $74.9 million to $109.5 million, yet the company continues to sustain losses — including a net loss of $3.7 million last year. But revenue growth is likely to continue; according to ABI Research, the home automation market is expected to grow from $571 million in 2012 to $2.6 billion by 2017. That represents an average annual growth rate of 35%.

Control4 will trade on the Nasdaq as CTRL.

Marrone Bio Innovations

Marrone Bio Innovations develops pest management products, which are based on naturally occurring microorganisms (like bacteria, fungi and plant extracts). These are known as “biopesticides” and have been approved by the Environmental Protection Agency. But the company still is in the early stages. Last year, revenues were $7.1 million, up from $5.3 million in 2011, but its net loss spiked from $13.2 million to $38.8 million.

Marrone Bio Innovations will trade on the Nasdaq under the ticker MBII.


YuMe operates a platform to deliver ads for online videos. The network supports a broad array of systems like personal computers, tablets, smartphones, set-top boxes, game consoles and Internet-connected TVs. The technology also uses machine learning to better target the ads and improve purchase intent. Revenues surged by 70.3% last year to $116.7 million, leading to a $6.3 million profit. However, the company could have problems with an IPO — rival Tremor Video (TRMR) pulled off its own deal at the end of last month, and its shares are already off by 29%.

YuMe will trade as YUME on the New York Stock Exchange.

Ellington Housing

Founded in late 2011, Ellington Housing leases single-family and multi-family residential properties. The markets include Atlanta, Charlotte, Denver, Memphis, Phoenix, Tuscon and San Antonio. In 2012, the company generated $607,940 in revenues and sustained a loss of $1.3 million.

Ellington will list on the NYSE, but has not yet announced a ticker.


OphthaliX develops treatments for ophthalmic disorders, such as dry eye syndrome and glaucoma. The company has one drug in Phase III and another in Phase II trials. OphthaliX should benefit from a large market potential — about 49 million people currently suffer from dry eye syndrome in the U.S., Europe and Japan, and glaucoma affects about 7 million people.

Ophthalix will list on the NYSE; its ticker has yet to be determined.

Stay tuned to see when these companies are expected to go public, and to see if Regado Biosciences finally goes through with its offer.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll 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.

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