Mar 27, 2014, 2:23 pm EDT
Ally Financial, a top auto finance company, has set the terms for its upcoming IPO, and the numbers are interesting — 95 million shares at a range of $25 to $28, which would mean a valuation of $13 billion at the midpoint.
But it’s hard to get excited for its prospects — there’s not much to differentiate Ally Financial from the industry’s many competitors.
A little background: The roots of Ally Financial go back to 1919 (right after World War I) when it was the finance arm for General Motors (GM). But by 2006, the automaker sold off a majority of the company, and of course, a few years later Ally got a $17.2 billion bailout loan from the federal government. Read
Mar 27, 2014, 12:18 pm EDT
Spotify – a popular streaming music service — appears to be gearing up for an initial public offering that could hit the markets in the fall. If reports are right, the company could start talking to investment banks as soon as next month, and a filing for the Spotify IPO might come during the summer.
There were other recent signs that a Spotify IPO was on the fast track. For example, the company snagged a $200 million line of credit from Morgan Stanley (MS), Deutsche Bank (DB) and Goldman Sachs (GS) — such a move generally comes about when an IPO is on the horizon. Also, Spotify has been looking to hire a specialist in federal securities filings!
Spotify is the brainchild of 20-something Daniel Ek, who started the company in 2006 in Stockholm, Sweden. The country turned out to be a great laboratory to experiment with the streaming music service. Read
Mar 26, 2014, 1:05 pm EDT
When it comes to mobile games, King Digital Entertainment (KING) is the mega player in the space. But this hasn’t helped the company’s IPO. In today’s trading, the shares are off by an ugly 11.5%.
Before the debut, there were already signs that the KING IPO would be soft. Unlike other offerings — such as Facebook (FB) and Twitter (TWTR) — the deal saw no increase in the price range. All in all, it was a classic sign of tepid demand from investors. Oh, and the King IPO was priced at the midpoint of the $21-to-$24 range — another mark against the offering.
Now, it’s true that the company’s business has been extremely robust. The company’s flagship game, Candy Crush Saga, gets a whopping 97 million daily active users. Read
Mar 25, 2014, 2:38 pm EDT
Box, which operates a storage and collaboration platform for businesses, has publicly disclosed its S-1 filing. The company plans to list on the NYSE under the ticker of “BOX,” and the lead underwriters include Morgan Stanley (MS), Credit Suisse (CS) and J.P. Morgan (JPM).
Even though Box is growing at a hefty pace, the losses are also piling up. If anything, the deal looks like a throwback to the giddy 1990s.
No doubt, the Box IPO will get a boost from the strong momentum in the core business. The company’s customers include more than 40% of the Fortune 500 and 20% of the Global 2000. Some of the mega brands are the Gap (GPS), Bechtel and Eli Lilly (LLY). Box also has 25 million registered users. Read
Mar 25, 2014, 11:57 am EDT
Even though the past couple days has seen a selloff of recent IPOs — especially for biotech companies — the quarter still remains fairly strong. In all, there have been 53 offerings, raising about $8.5 billion (according to Renaissance Capital). The average first-day return? A juicy 22%.
And the momentum should continue for new stocks. Consider that there are 118 companies in the pipeline for IPOs, and some of them are expected to be big offerings. Just some include Box — which just filed today — Weibo, King Entertainment (the maker of the Candy Crush Saga game) and GrubHub. Read
Mar 24, 2014, 12:22 pm EDT
Last week, 8 IPOs hit the markets, with the average return a hefty 32%. It certainly helped that most of the companies were either cloud operators or biotech firms.
As for the current week, expect the good times to continue. No doubt, much of the attention will be on King Entertainment, which is the developer of the widely popular Candy Crush Saga game. The deal could wind up being one of the biggest for the year.
Let’s take a look at each of the new stocks to watch for this week: Read