2012 IPOs
The New Year is here, and the finance world is all abuzz about 2012 IPOs. What are we looking at this year, after a slightly disappointing IPO world in the latter half of 2011? You got it: the Facebook IPO is slated to finally hit the charts this May.
Another big one to watch for 2012 IPOs is the Carlyle Group IPO, which actually filed last September. A big player in the world of private equity, this company manages more than $150 billion in assets. The Carlyle Group IPO has been in the making for years, but 2010 may finally be it.
Get ready for the other 2012 IPOs like Kayak Software, Glam Media, several energy companies, some more finance companies, and perhaps even as exciting as the Facebook IPo, Ceasars Entertainment.
Ceasar’s Entertainment owns more than 50 casinos across the globe under the familiar names of Harrah’s, Ceasar’s, and Horseshoe brands.
YELP IPO
Finally, something for upcoming IPO investors to be excited about again: the YELP IPO was announced this week and is planned for sometime in 2012. After a dismal September and not much better October, companies are starting to get in through the window left open by the Groupon IPO.
There’s really no much information yet about the YELP IPO, except that it is planned for 2012. The filing states a $100 million amount but that is just a ballpark figure that can change at any time. YELP was founded by a PayPal executive and isn’t even profitable yet but the YELP IPO is trying to get on the internet share bandwagon that is taking place with IPO investors.
Violin Memory IPO
The Violin Memory IPO may be the one of the first upcoming IPOs for the first or second quarter of 2012. In addition to mentioning a Violin Memory IPO the CEO also said there may be an acquisition or two in the works.
The company makes all flash memory storage units for data storage and competes with a company whose CEO now heads Violin. The flash storage world is hot right now, as far as tech investments go, so the news of the Violin Memory IPO is exciting to those working in the industry and those who watch and analyze upcoming IPOs.
There are many well-funded startup companies in the flash memory business. Each has its own flash memory system, all of which are beginning to rival actual hard disk drives for computers. Violin Memory usually sells high end computer gear to high-end customers.
What looks good for the Violin Memory IPO is the mere fact that the company has taken in millions in capital this year, and it’s projected that they will double their revenue in 2012. And if the Violin Memory IPO is successful, well that’s must money for this company.
Groupon IPO Update
Well it’s time for a Groupon IPO update now that the year is in its final quarter and still not a thing has moved forward in this area.
The coupon or daily deal website company had first announced a summer 2011 IPO valued at $750 million but now the figure has been reduced to a hope of raising $500 million in the long awaited Groupon IPO.
They plan to sell 30 million shares at $16 to $18 per share, which puts their capital raised at anywhere from $480 million to $540 million. That puts the company’s value at around $10 billion to $11 billion. Last summer’s announcement of the Groupon IPO valued the company at $20, however.
Things have changed, to say the least. The stock market has been very volatile during late summer and this Fall, and Groupon itself has had a rocky season as well. Two chief operating officers departed in one year, making the Groupon IPO turn out to be a more risky business that was previously expected.
Groupon, based, in Chicago, did increase revenue during the third quarter, however. The Groupon IPO roadshow starts next week, which is period of time before the actual IPO date, during which the company promotes itself to potential investors.
Mascoma IPO
The Mascoma IPO announced last week has the biofuels world chattering. The company, based in New Hampshire, develops technology for cellulosic ethanol production. The newest wave in biofuels technology has researchers trying to find a way to cheaply product ethanol fuel without relying on corn.
Executives at the company hope to raise up to $100 million worth of shares in the Mascoma IPO, which is backed by Morgan Stanley, UBS Securities and Credit Suisse. There are several venture companies invested privately in Mascoma, namely SunOpta, Flagship, and General Catalyst. Earlier this year Mascoma partnered with Valera in constructing a production plant in Michigan.
The Mascoma IPO papers state that the Michigan plant is expected to produce, on a yearly basis, twenty million gallons of ethanol. The drop-in yeast substitute is their featured product, and it replaces an expensive portion of the ethanol production process used in other methods. They estimate the yeast substitute will result in a cost savings of one to two cents per gallon. This is the key factor they hope will grab investors’ attention during the Mascoma IPO.
Mascoma makes ethanol fuel out of hardwood pulp rather than corn and aims to produce unsubsidized ethanol at around $1.77 per gallon. This represents several substantial benefits over producing ethanol from corn, which is subsidized. They have a demo facility in Rome, NY, and have shown considerable success in their technology.
Toys R Us IPO
The Toys R Us IPO was first initiated in 2010, and it has been delayed for over a year. Now, we’re hearing that it may not happen until 2012. The nation’s largest toy store had planned to raise $800 million when they announced their upcoming IPO in May of 2010.
Toys R Us has performed well, even making increases in sales during the nation’s recession. Even though the toy industry is believed to be recession-proof, other toy stores in the country posted losses during the recession.
Everything had looked good for a Toys R Us IPO: they cut costs, they announced during a time when the stock market was booming, they expanded operating profit to record levels and even gained market share against their rough competitors, Wal-Mart.
Analysts say maybe they shouldn’t have waited because the picture is quite different now, as Summer 2011 winds down. Toys R Us expanded but at half the rate of the previous year. And as we’re seeing, upcoming IPOs are not faring as well since the stock market has been so volatile and hostile to new stocks.
While Toys R Us made a lot of smart moves before its upcoming IPO, it also made a few mistakes. Apparently they opened too many temporary stores during the Holiday season last year. Rental spaces in malls were too expensive and sales didn’t pan out they way they wanted.
IPOs in 2011
Until this month, IPOs in 2011 have been a tale of one success story after another. More initial public offerings were scheduled to occur this year, especially during the summer months, than since the recession began.
According to an Associated Press report, more than 200 IPOs in 2011 were expected. Now, after dramatic stock market swings this month, that number may be a little optimistic. Already, 17 2011 IPOs have been cancelled in August. So far, there have been around 100 IPOs in 2011.
Not since the end of 2008 have there been so many IPO cancellations. Why the turn of events in the word of initial public offerings? Wild swings in the stock market make investors nervous, so companies considering going public would rather wait until investors feel good about risking their money, so they pull out indefinitely or in some cases for good.
One company that went public this month, Carbonite Inc., slashed the share price dramatically for their IPO. Analysts are advising other companies going public to do the same, saying they should be realistic and lower their asking price for shares.
One example of why analysts warn companies with upcoming IPOs to set realistic prices is Chinese video website Tudou Holdings Ltd. They didn’t revise their share price and the stock fell 12 percent the first day and has since lost a quarter of its value.
Tudou IPO
Tudou Holdings Ltd is an online video website for the Chinese market. It’s the second largest online video site in China and hopes to shore up its position by going public, the latest of several Chinese IPOs.
The Tudou IPO was announced last November but the event was delayed by a quarrel between the founder and his ex-wife. Gary Wang, founder of Tudou Holdings, may regret the delay, since the first half of 2011 seems to have been the sweet spot for Chinese IPOs.
That’s because although investors favor Chinese IPOs, especially anything having to do with the internet, a wave of accounting irregularities has made this type of investment a little less attractive, according to analysts.
The Tudou IPO may benefit from a different type of timing, however, that of the recent recession upswing, and downgrade of US debt this past week. Those behind the Tudou IPO hope to raise $180 million on the Nasdaq, which is double the amount stated in their initial SEC filing last winter 2010.
The Tudou IPO occurs this week. Since online video companies need lots of cash for copyright fees and bandwidth, so the company looks forward to an influx of money.
Era Group IPO
Era Group is planning an IPO, although it has not yet filed. The offshore marine helicopter company, based in Fort Lauderdale, has filed preliminary paperwork ahead of the expected announcement of the official filing of the Era Group IPO. The chopper company is actually owned by Seacorp Holdings, which acquired Era Group in 2004. It operates as a part of Seacorp called Aviation Services.
Era Group operates helicopters for marine transportation for a variety of purposes, including offshore oil drilling, search and rescue operations, and sightseeing trips. The company operates marine transportation as third party entity worldwide and Era Helicopters is based in Lake Charles, Louisiana. Era is one of the largest helicopter companies in the world and has been around for decades in the United States.
No date has yet been named in the upcoming Era Group IPO, nor has the number of shares been disclosed, but it will be offering Class A common stock. They plan to raise $50 million and to be listed on the NY Stock Exchange with the ticker ERA. The capital raised will be used to repay advances from SEACORP, which owns 100% of Era outstanding common stock. SEACORP will still be the controlling stock holder after the ERA Group IPO.
Teavana IPO
Tomorrow is the much-awaited Teavana IPO, announced first last April. Teavana is based in Atlanta, Georgia and hopes to raise $100 million in tomorrow’s IPO. They will offer 7 million shares priced between $13 and $15 per share. Say shares go for $14 and their company will be worth $553 million.
Teavana makes tea and tea products like teapots and cups, and has 150 retail stores in malls across the United States and Mexico. It was founded in 1997 and had $134 million in sales the year preceding May 2011.
If you plan to follow the Teavana IPO, look for their symbol on the NYSE: TEA. Lead underwriters are Bank of America, Merrill Lynch, and Goldman, Sachs & Co.
Teavana offers high end tea and tea products such as cast iron teapots, glass teapots, tea gifts, and all sorts of tea from herbal to green to exotic blends for making iced tea. Their mall stores offer shoppers a unique experience, with tea samples and knowledgeable staff very willing to explain the various methods of brewing tea. They call them “teaologists” and are ready to help customers find their way through the maze of 110 types of teas sold at Teavana stores.
Teavana’s stores are combination Tea Bar and Tea Emporium and staff stresses the health benefits of tea. Teavana gives 1% of annual profits to charity, which is called CARE.