Last week, the IPO market continued its winning ways. Six companies pulled off deals — two of which were slightly in the red, but the other four of which posted double-digit positive returns, including Sprouts Farmers Market (SFM), which more than doubled.
Here’s a rundown:
|Company||Ticker||Return (from IPO price)|
|Sprouts Farmers Market||SFM||+122.1%|
|Marrone Bio Innovations||MBII||+14.6%|
|American Homes 4 Rent||AMH||-1.1%|
For the current week, the activity will ramp up even more – that is, 10 deals are expected to hit the market. So let’s take a look at each:
Cvent operates a cloud platform that helps manage events, such as conferences and tradeshows. Some of the features include venue selection, proposals, member surveys, social media promotion, fee collection, logistics (travel and lodging) and mobile apps.
In 2012, Cvent improved its revenues 37% year-over-year to $83.5 million, helping to produce $20.3 million in adjusted EBITDA and $4.3 million in net income.
Fox Factory Holding
Fox Factory develops high-performance suspension products, such as for mountain bikes, side-by-sides, off-road vehicles and trucks, ATVs and snowmobiles. The products are often used by top professional athletes in events like the UCI Mountain Bike World Cup and the X Games.
Growth has been solid. Revenues jumped from $131.7 million in 2008 to $235.9 million in 2012, with net income improving 270% to $14.2 million in that time.
Fox Factory intends to issue 8.6 million shares on the Nasdaq under the ticker “FOXF” at a range of $13 to $15. Lead underwriters include Baird, William Blair and Piper Jaffray (PJC).
Founded 75 years ago, Frank’s International is a global leader for engineered tubular services to the oil and gas industry. These involve managing and installing multiple joints of pipe to establish cased wellbores, which provide a conduit for oil to reach the surface. The technology is highly sophisticated, especially in offshore environments, and is based on 104 U.S. patents and 136 related international patents.
Customers include BP (BP), Chevron (CVX), Exxon Mobil (XOM), Statoil (STO) and Saudi Aramco. They helped drive 2012 revenues that grew by 43% to $1 billion and adjusted EBITDA that jumped by 79% to $446.6 million.
The deal will be a large one, as Frank’s plans to issue 30 million shares on the NYSE under the ticker “FI” at a range of $19 to $21. Lead underwriters include Barclays (BCS), Credit Suisse (CS) and Simmons & Co.
Independence Realty Trust
Independence Realty Trust is a real estate investment trust that owns a portfolio of apartment properties. In all, they include 2,004 units in Arizona, Colorado, Georgia, Indiana, Texas and Virginia. As for the occupancy rate, it is a healthy 94%.
In 2012, revenues were $16.6 million, just less than double the amount a year earlier. Net income went from a loss of $370,000 to a gain of $856,000. Although, a big part of the top-line growth was from acquisitions.
Independence Realty Trust intends to issue 4 million shares on the NYSE under the ticker “IRT” at a range of $10 to $11. Lead underwriters include Ladenburg Thalmann & Co., William Blair, JMP Securities and Compass Point.
Intrexon focuses on synthetic biology, which applies engineering principles to biological systems. The technology helps improve the quality and productivity of food crops and livestock, and can be used to develop new forms of alternative energy.
The company still is in the early stages. From 2011 to 2012, revenues grew from $8.2 million to $13.9 million, while the net loss went from $99 million to nearly $104 million.
Intrexon plans to issue 8.3 million shares on the NYSE under the ticker “XON” at a price range of $14 to $16. Lead underwriters include JPMorgan (JPM) and Barclays.
MiX Telematics operates a cloud system that manages vehicle fleets. It helps with such things as optimizing costs, managing compliance and even improving driver safety.
In fiscal 2013, subscription revenues increased by 19% to $74.2 million; thanks to juicy margins, adjusted EBITDA was up 21% to $31.4 million.
MiX Telematics plans to issue 6.3 million shares on the NYSE under the ticker “MIXT” at a range of $14 to $16. The lead underwriters include Raymond James (RJF) and William Blair.
QEP Midstream Partners
QEP Midstream Partners is a limited partnership – which is a spin-off from QEP Resources (QEP) — that is focused on acquiring and managing midstream energy assets, which include four gathering systems and two pipelines. The main areas of operations include the Green River Basin located in Wyoming and Colorado, the Uinta Basin located in eastern Utah, and the portion of the Williston Basin located in North Dakota.
Last year, adjusted EBIDTA improved 3% to $112.9 million on sales that climbed by 4% to $162.2 millionn.
QEP Midstream Partners plans to issue 20 million shares on the NYSE under the ticker “QEPM” at a range of $19 to $21. Lead underwriters include Wells Fargo Securities (WFC), Morgan Stanley, Citi (C) and Deutsche Bank (DB).
Stock Building Supply
Stock Building Supply is a diversified lumber and building materials distributor and solutions provider. The company sells primarily to new construction and repair and remodel contractors. Some of its 39,000-plus products include lumber & lumber sheet goods, millwork, doors, flooring, windows, trusses, wall panels and other exterior products.
No doubt, Stock Building Supply has benefited from the rebound in the housing market, and it helps that it has a heavy focus in the places like Texas and California.
From 2010 to 2012, revenues grew from $751.7 million to $942.4 million and adjusted EBITDA went from a loss of $58 million to a gain of $2 million.
Stock Building Supply plans to offer 8.8 million shares on the Nasdaq under the ticker “STCK” at a range of $16 to $18. Lead underwriters include Goldman Sachs, Barclays and Citi.
World Point Terminals
World Point Terminals is a limited partnership that operates storage facilities for light refined products, heavy refined products and crude oil. The terminals are located in key areas on the East Coast, Gulf Coast and Midwest regions. At the close of the IPO, the company will have about 12.8 million barrels of available storage capacity.
However, growth has stalled at World Point. In 2012, revenues came to $74.1 million, down from $74.8 million in 2012. During this period, adjusted EBITDA fell from $48.9 million to $46.4 million.
World Point Terminals plans to issue 8.8 million shares on the NYSE under the ticker “WPT” at a range of $19 to $21. The lead underwriter is BofA Merrill Lynch (BAC).
YuMe operates an online video network that spans personal computers, tablets, smartphones, set-top boxes, game consoles and Internet-connected TVs. The reach is about 257 million unique visitors (as of May).
The company has been ramping up at a nice clip. Last year, revenues spiked by 70% to $116.7 million and net income came to $6.3 million. The company has sterling customers like American Express (AXP), Home Depot (HD) and McDonald’s (MCD).
Despite this, the IPO may run into some headwinds. Keep in mind that a similar type of company, Tremor Video (TRMR), went public a few weeks ago and has gone on to post a disappointing -19% return.
YuMe plans to issue 5 million shares on the NYSE under the ticker “YUME” at a range of $12 to $14. The lead underwriters include Citi and Deutsche Bank.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.