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3 IPOs Are on Deck This Week

Health foods operator WhiteWave should get lots of interest


Just a few weeks ago, the IPO market came alive, with standout offerings from companies like Workday (NYSE:WDAY) and Realogy (NYSE:RLGY). But since then, there’s been a dearth of deals. And this week is no exception: Only three IPOs are planned.

Here’s a look at each:

Workday Floats Higher on Huge IPO, Cloud
Workday Floats Higher on Huge IPO, Cloud

Lehigh Gas Partners (NYSE:LGP): This is a master limited partnership (MLP) that focuses on wholesale distribution of motor fuels. The company’s main objective is to produce strong ongoing quarterly cash distributions to its shareholders. The initial payout is expected to be $1.75 per year.

LGP makes money from rental income on 15-year lease agreements with customers like Exxon Mobil (NYSE:XOM), BP (NYSE:BP) and Valero (NYSE:VLO). Lehigh Gas posted $1.9 billion in revenues over the past year.

In the IPO, it plans to issue 6 million shares at a range of $19 to $21 each. The lead underwriters include Raymond James, Baird, Oppenheimer & Co. and Janney Montgomery Scott.

 MPLX  (NYSE:MPLX): Yes, this is another MLP, and the annual cash payout is expected to be $1.05.

MPLX is a spin-off of Marathon Petroleum (NYSE:MPC), and it focuses on pipelines for crude oil and refined products. For the past year, revenues have come to about $426 million.

The company plans to issue 15 million shares at a range of $19 to $21. The lead underwriters include UBS Investment Bank (NYSE:UBS), BofA Merrill Lynch (NYSE:BAC), Morgan Stanley (NYSE:MS) and Citi (NYSE:C).

WhiteWave Foods (NYSE:WWAV): This is a division of Dean Foods (NYSE:DF). Essentially, WhiteWave develops health-oriented packaged foods and beverages. Some of its brands include Silk, International Delight and Horizon Organic.

As should be no surprise, WhiteWave’s market has been strong. From 2007 to 2011, the compound annual growth rate in sales was about 13.6%. For the past 12 months, sales came to about $2.2 billion.

Keep in mind that other IPOs in WhiteWave’s industry have done quite well, such as Annie’s (NYSE:BNNY) and Natural Grocers by Vitamin Cottage (NYSE:NGVC). Their returns are 129% and 43%, respectively.

WhiteWave plans to issue 20 million shares at a range of $14 to $16. The lead underwriters include JPMorgan (NYSE:JPM), Credit Suisse (NYSE:CS) and BofA Merrill Lynch.

Tom Taulli runs the InvestorPlace blog IPOPlaybook, 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.”  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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