Last week was the restart of the IPO market. But of the five deals that came out, only two were able to muster strong gains. Trulia (NYSE:TRLA) returned 36% and Susser Petroleum Partners (NYSE:SUSP) was up 13%.
As for the coming week, it looks like the activity will remain flat. Four deals are expected to hit the market, yet only one is likely to get much attention: Grupo Financiero Santander Mexico.
The firm, which is the second-largest bank in Mexico, plans to issue 235.1 million shares at a range of $10.99 to $12.70. The underwriters include Santander, UBS Investment Bank (NYSE:UBS), Deutsche Bank Securities (NYSE:DB) and BofA Merril Lynch (NYSE:BAC). The company plans to list on the NYSE under the symbol BSMX.
The prospects for Santander Mexico look promising. Mexico has seen solid growth over the years, with increases in GDP of 5.5% and 3.9% in 2010 and 2011, respectively. The country also remains fairly unbanked.
Santander Mexico has assets of $62.4 billion and shareholder’s equity of about $7.3 billion. For the first half of 2012, the firm reported net income of roughly $700 million, which was a 19.9% return on average shareholder’s equity.
As for this week’s three other deals, here’s a rundown:
GlobeImmune: This biotech company was supposed to trade last week but was delayed. The company develops treatments for cancer and a variety of infectious diseases. But its drugs are all currently in clinical trials.
GlobalImmune plans to sell 5 million shares at a range of $11 to $13. The lead underwriters include Wells Fargo Securities (NYSE:WFC) and Piper Jaffray
Summit Midstream Partners LP: This is a master limited partnership, which allows for tax-free cash distributions for shareholders. These types of deals have been popular lately because of the general interest in high-dividend paying stocks.
Summit Midstream provides gas gathering and compression services for the Piceance Basin in Colorado and the Forth Worth Basin, which includes the Barnett Shale formation. The infrastructure includes 385 miles of pipeline and 147,600 horsepower of compression.
For the past six months, Summit Midstream generated $75.9 million in revenue and $51.5 million in adjusted EBITDA. The firm has contracts with companies like Exxon Mobil (NYSE:XOM) and EOG Resources (NYSE:EOG).
Summit Midstream plans to issue 12.5 million units at a range of $19 to $21. The lead underwriters include Barclays (NYSE:BCS), BofA Merrill Lynch (NYSE:BAC), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS).
Qualys: The company develops cloud-based security and compliance solutions. It has over 5,800 customers across more than 100 countries.
From 2009 to 2011, revenues increased from $57.4 million to $76.2 million. As for the first half of 2012, the revenues came to $43.4 million, with a net loss of $600,000.
Qualys plans to issue 7.6 million shares at a range of $11 to $13. The lead underwriters include J.P. Morgan (NYSE:JPM) and Credit Suisse (NYSE:CS)
Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.
A long-time follower of the IPO scene, back in 1999 Tom started one of the first sites in the space called WebIPO. It was a place where investors got research as well as access to deals for the dot-com boom. Tom also wrote the top-selling book, Investing in IPOs. In it, he covers all the aspects of analyzing an IPO, such as reading the prospectus, detecting the risk factors and understanding some of the arcane regulations. But don’t worry — if that process is too intimidating for you, thankfully Tom will do the legwork for you right here in the IPO Playbook blog.
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