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Two IPOs on Tap This Week

A child care operator and medical diagnostic firm plan to come out


The IPO market got back into gear last week, with five deals. Interestingly, the standout transaction was Norwegian Cruise Line Holdings (NASDAQ:NCLH). On its Friday debut, shares spiked 30% to $24.79. The company raised about $447 million.

For the coming week, though, activity will be much more subdued, with only two deals expected. Here’s a look at each:

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Bright Horizons (NYSE:BFAM): The company is a provider of child care and early-education services for employers. The business model is based on multiyear contracts, which generate revenues on a profit-sharing or cost-plus calculations.

In the U.S., Bright Horizons is the clear market leader at about five times the size of its closest competitor. The company also has operations in the U.K., the Netherlands, Ireland, Canada and India.

For the first nine months of 2012, revenues went from $724.8 million to $797.5 million, while adjusted EBITDA increased by $109.7 million to $132.4 million. It currently has over 850 customers, which include over 130 of the Fortune 500.

Bright Horizons plans to issue 10.1 million shares at a range of $19 to $21. The lead underwriters include Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM) and Barclays (NYSE:BCS).

LipoScience (NASDAQ:LPDX): The company creates diagnostics based on nuclear magnetic resonance. The main product, LipoProfile, tests the levels of low density lipoprotein, or LDL, particles in a blood sample, which help to manage the risks of heart disease.

It also has other products in development. One is Vantera, which is an automated clinical analyzer.

For the first nine months of 2012, LipoScience’s revenues came to $41.2 million, up from $33.2 million in the same period a year before. During this time, the net loss went from $1.2 million to a net profit of $316,000.

The company plans to issue 5 million shares at a range of $13 to $15. The lead underwriters include Barclays, UBS Investment Bank (NYSE:UBS) and Piper Jaffray.

Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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