Big Brand Names Pepper This Week’s Slate of New IPOs

Potbelly, Re/Max among nine offerings on the docket

     

Volatility? What volatility? According to the IPO market, all’s well on Wall Street. We saw 11 deals hit the market last week, with only one — Violin Memory (VMEM), down 22% on its debut — coming up a dud.

This week, we’ve got a robust nine deals on deck. Several of them are holdovers — I covered Fate Therapeutics (FATE) here and Tecogen (TGEN) here. For now, let’s look at the rest of the new IPOs:

Burlington Stores

Founded in 1972, Burlington Stores is a national off-price retailer of quality branded apparel, boasting more than 500 stores across 44 states, with locations averaging 80,000 square feet.

Back in 2006, Bain Capital took Burlington private in a $2 billion transaction. But the deal proved difficult, and the firm brought in Tom Kingsbury as the new CEO. Before coming on board, he was senior vice president of information services and e-commerce at Kohl’s (KSS).

From fiscal years 2011 to 2013, revenues climbed from $3.7 billion to $4.1 billion, while adjusted EBITDA increased by about 8% to $332 million.

For the Burlington IPO, the company plans to issue 13.3 million shares on the New York Stock Exchange under the ticker “BURL” at a range of $14 to $16. Lead underwriters include JPMorgan (JPM), Morgan Stanley (MS), Bank of America (BAC), Wells Fargo (WFC) and Goldman Sachs (GS).

Cherry Hill Mortgage Investment Corporation

Cherry Hill Mortgage Investment Corporation is a real estate investment trust that is focused on acquiring, investing and managing residential mortgage assets. A key part of the strategy is to leverage an alliance with Freedom Mortgage, which is expected provide a nice pipeline of leads.

However, Cherry Hill is still in the early stages and has yet to generate any revenues. But by issuing 6.5 million shares — to be listed on the NYSE under the ticker “CHMI” — at $20 each, the company plans to use the proceeds to put together a portfolio.

Lead underwriters include Barclays (BCS), Morgan Stanley, Citigroup (C) and UBS (UBS).

Empire State Realty Trust

Empire State Realty Trust is a REIT that owns 12 properties in the New York City area, with the most notable being the Empire State Building. Over the past few years, the company has worked through a complex ownership structure, which has involved a variety of lawsuits. But now all the outstanding claims have been dealt with.

Since the financial crisis of 2008, ESRT has experienced a nice rebound, with revenues more than doubling to $511.3 million and EBITDA jumping 17% to $156.6 million.

For the Empire State IPO, the company plans to issue 71.5 million shares on the NYSE under the ticker “ESRT” at a range of $13 to $15. Lead underwriters include Goldman Sachs and BofA.

InterCloud Systems

InterCloud Systems provides cloud and managed services for corporate enterprises and service providers. Some of its offerings include network management, 24/7 monitoring, interactive communications, mobile support, security and backup.

2012 revenues came to $17.2 million, up from $17.2 million in the previous year, and the net loss fell from $6.4 million to $2.1 million. However, the main reason for the spike on the top line was the acquisition of Digital Comm.

 
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