Sprouts Leads 7 IPOs for the Week

Athlon Energy, Control4 among other slated offerings

     

The heavy action in IPOs continued last week as 11 deals hit the market, but the performance was a bit uneven.

While stocks like Agios Pharmaceuticals (AGIO, +59% through today) and Phillips 66 Partners (PSXP, +49%) soared, more than half the transactions had negative returns, with companies like Cellular Dynamics (ICEL) and Liquid Holdings (LIQD) posting nearly 15% losses.

Still, Wall Street is feeling aggressive on the dealmaking front, with another seven offerings on this week’s slate.

American Homes 4 Rent

American Homes 4 Rent is a real estate investment trust that buys, renovates and leases single-family homes. The chairman and founder of the company, B. Wayne Hughes, has more than 40 years in the industry, having been the co-founder and former CEO of Public Storage (PSA).

American Homes, which owns 17,949 units, is still in its early stages, and is taking on considerable losses. In Q1, the company brought in $6.6 million in revenues but finished $7.8 million in the red.

American Homes 4 Rent plans to issue 44.1 million shares under the ticker “AMH” on the New York Stock Exchange at a range of $16 to $18. Lead underwriters include Goldman Sachs (GS), BofA Merrill Lynch (BAC), JPMorgan (JPM), Wells Fargo Securities (WFC) and FBR Capital Markets.

Ardmore Shipping

Ardmore Shipping provides seaborne transportation of petroleum products and chemicals worldwide to oil majors and chemical companies. The fleet consists of 12 vessels, of which eight are in operation and four are on order, and Ardmore has letters of intent to purchase another six.

The company is based in Cork, Ireland — enjoying the lucrative tax and geographic advantages that location provides — and has a focus on modern, fuel-efficient midsize vehicles.

In 2012, revenues improved 12.5% year-over-year to $25.2 million, and the net loss shrunk from $4.5 million to $3 million.

Ardmore plans to issue 10 million shares on the NYSE under the ticker “ASC” at a range of $15 to $17. Lead underwriters include Morgan Stanley (MS), Jefferies (JEF) and Clarkson Capital Markets.

Athlon Energy

Athlon Energy is an independent exploration and production company focused on unconventional oil and liquids-rich natural gas reserves. The location of the assets is primarily in the Permian Basin, which covers parts of Texas and New Mexico.

For the most part, the drilling is for low-risk vertical development; coverage is about 124,925 gross acres.

Growth has been strong. Revenues spiked from $65.7 million in 2011 to $157.1 million in 2012, and Athlon went from a $1.1 million loss to $53 million in profits during that time.

Athlon plans to issue 15.8 million shares on the NYSE under the ticker “ATHL” at a range of $18 to $20. Lead underwriters include Citi (C), Goldman Sachs, BofA Merrill Lynch, UBS Investment Bank (UBS) and Wells Fargo Securities.

Control4

Control4 is a provider of home automation solutions, such as for adjusting temperature, locking doors, controlling lighting and handling security. Consumers can use mobile devices such as Apple (AAPL) iPhones with the system. The company has installed its system in more than 120,000 homes.

 
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