Nov 16, 2011, 12:11 pm EST
Thomas O’Malley has spent over 30 years in the refining business. During his career, he served as the CEO of Tosco, which he sold to Philips Petroleum in 2001. Then he took the helm of Premcor, and he sold that firm to Valero (NYSE:VLO) a few years later.
Even though he is now 70 years old, O’Malley has not slowed down. In fact, his latest refining company – PBF Energy – has just filed to go public. The company’s funders include Blackstone (NYSE:BX) and First Reserve, which both have extensive background in the energy business. Citigroup and Morgan Stanley are lead underwriters on the deal.
Launched in 2008, PBF has seen a big opportunity to buy refineries at lucrative discounts because of the global recession. As a result, the company was able to snag government support as well as negotiated better terms with unions and vendors. Read
Nov 16, 2011, 9:50 am EST
Just imagine if you bought shares in the IPOs of Microsoft (NASDAQ:MSFT), Wal-Mart (NYSE:WMT) or Starbucks (NASDAQ:SBUX). Think you’d have retired by now?
Well, with continued innovation in the U.S. economy — such as with social networking, mobile and cloud computing — there’ll be plenty of opportunities to hit an IPO investment home run.
But there is another — though a tad more difficult — way to get rich through IPOs. That is, you can be an adviser or key employee for a company that is going through the process of going public. Read
Nov 15, 2011, 12:04 pm EST
Back in 2007, Caesars Entertainment went private in a $27.8 billion transaction. It was one of the last deals before the financial crisis wrecked the private equity boom.
Since then, Caesars has been trying to deal with its huge debt load. To this end, the company has attempted to return to the public markets, filing last year for an offering to raise more than $500 million, but there was not enough interest.
Caesars is now making another try, filing yet again this week for an IPO. This time, however, the expectations are much more sedate, with a total amount of $50 million (but this can easily be boosted as the IPO gets closer). Read
Nov 15, 2011, 11:44 am EST
It’s amazing how quickly Wall Street can throw together an exchange-traded fund. This week, Global X launched the Social Media Index (NASDAQ:SOCL) ETF, which began trading Tuesday, although on very low volume.
That this ETF is coming from a company with “global” in its name is fitting: After all, the index would be sparse if it only comprised U.S.-based social media companies. Only a handful of such operators have gone public over the past year, such as Groupon (Nasdaq:GRPN), Pandora (NYSE:P) and LinkedIn (NYSE:LNKD).
But more than one-third of the ETF’s portfolio includes Chinese based operators. Some include Tencent Holdings and Sina (NASDAQ:SINA). Read
Nov 14, 2011, 11:58 am EST
After listing on the Norwegian over-the-counter market, Pacific Drilling (Nasdaq:PACD) is now public in the U.S. The IPO priced last Friday at $8.25 (the expected range was $8-$10), and the stock ended the day unchanged. Lead underwriters included Morgan Stanley and Deutsche Bank.
Pacific Drilling is an ultra-deepwater oil drilling operator. Its CEO, Christian Beckett, is a leading figure in the industry. Before joining the company, he served in senior positions at Transocean (NYSE:RIG), Schlumberger (NYSE:SLB) and McKinsey.
Beckett’s goal is to build a fleet of six ultra-deepwater drillships, which will require a total investment of $4.4 billion. Since 2006, the company has already spent $2.7 billion, a big bulk of which has come from loans. Thus, adding equity through an IPO should help allow for more debt financing. Read
Nov 14, 2011, 11:23 am EST
Back in May, Renren (Nasdaq:RENN) pulled off a successful IPO, with the stock moving up 28% on its first day of trading. With the company being touted as the “Facebook of China.” How could it lose?
It’s done just that — since Renren’s debut, shares have plunged below $5 from $24.
Yet there are still some bright spots. For example, last week Renren announced a strong third quarter last week with revenue jumping 57.1% and the number of activated users increasing to 137 million from 103 million. In addition, as an indication of the site’s engagement, total monthly unique logins went to 38 million from 24 million over the past year. Read