Security Contractor files for $1.7B IPO

123jump.com Staff
03 Sep, 2005
New York City

The traditional summer IPO lull is in progress. No deal is scheduled to be priced till the week of September 19th. Seven companies filed for initial public offerings, including SAIC to raise $1.7 billion. Celldex withdrew IPO filing.

195 companies filed for initial public offerings so far this year. Of the total of 195 filings 88 have already been priced, 8 have been withdrawn and 1 has been postponed.

There are no deals expected to be priced this week.


LATEST FILINGS

Security systems troubleshooter Science Applications International Corp. ((SAI)) registered for an IPO on Thursday. The company could raise as much as $1.73 billion on the offering. This offering would rival Google Inc.'s ((GOOG)) $1.8 billion deal in 2004 in size and be the largest IPO of a government contractor in years.

The number of shares to be offered and their price range haven’t yet been determined. Those details are expected to be in future filings. SAIC expects the initial public offering to commence in the beginning of 2006.

SAIC's filing for the initial public offering was coupled with a filing for a proposed capital restructuring. SAIC would form a parent company called SAIC Inc, and its current stockholders would be stockholders of the parent company. Morgan Stanley and Bear Stearns are stated as the lead managers on the offering.

The San Diego-based company is the largest privately held defense contractor that provides scientific, engineering, systems integration and technical services to the U.S. Government and commercial markets. It focuses on solving complex technical issues in the areas of national security, intelligence and homeland defense.

For its first quarter ended April 30, the company earned $585 million on $1.85 billion in revenues. SAIC had net income of $409 million on revenue of $7.2 billion for the fiscal year, ended January 31, 2005.

Ituran Location and Control ((ITRN)), a stolen vehicle tracker, registered for an initial public offering on Thursday. The Israel-based company plans to offer 4.8 million ordinary shares on the offering. The company plans to offer 3.84 million shares, and stockholders will sell 960 thousand additional shares. The filing did not set a price range for the shares in the offering.

The company provides location-based services for stolen vehicle recovery and tracking services as well as wireless communications products in the U.S., Israel, Brazil and Argentina. It has started installing automatic vehicle location infrastructures in China and South Korea. Ituran's shares are currently traded on the Tel Aviv Stock Exchange.

Over the past twelve months ended June 2005, Ituran posted $86 million in revenue. For the six months ended June 30, the company earned $7.1 million on $43.7 million of revenues. During the same period for year 2004, the company earned $4.9 million on $36.1 million of revenues.

UBS Investment Bank, JP Morgan, William Blair and Unterberg Towbin are underwriters on the deal. They have the option to buy 720 thousand additional shares to excess demand.

Traffic.com ((TRFC)), a leading provider of traffic information in the United States, filed for an initial public offering of common stock on Wednesday. The company is planning to raise up to $86.3 million in its IPO.

The filing did not reveal how many shares Traffic.com plans to sell or at what price. Some of the units will be sold by shareholders. WR Hambrecht is the deal manager.

Traffic.com provides traffic information for 24 of the largest U.S. metropolitan areas to radio and television and sells Internet advertising on its Website and its customers' Websites.

The Wayne-based company generated $46 million in revenues over the past twelve months ended June 2005. Its net loss for the six months ended June 30, widened to $11.4 million from $8.7 million for the previous year. For the same period revenue rose to $23 million from $21.1 million.

SGX Pharmaceuticals ((SGXP)), a biotechnology company focused on the discovery, development and commercialization of innovative cancer therapeutics, filed a registration statement with SEC for an initial public offering on Friday. The company will raise up to $80.5 million in the IPO. CIBC World Markets, Piper Jaffray and JMP Securities will be the managers on the deal.

During the past twelve months, the company generated $25 million in revenue. For the six months ended June 30, was reported a net loss of $12.9 million on $9.9 million of revenues. During the same period in 2004, the company posted a net loss of $7.1 million on $11.9 million of revenues.

Energy Transfer Equity L.P. ((ETE)), a master limited partnership that owns the general partner interest of publicly traded natural gas limited partnership Energy Transfer Partners ((ETP)), filed for an IPO on Friday.

The Dallas-based company stated that it will offer 15.0 million shares and is hoping to raise up to $345 million in the offering.

UBS Investment Bank and CS First Boston lead the list of underwriters on the deal.

Liguefied petroleum gas shipper StealthGas ((GASS)), filed for an initial public offering on Monday. The provider of liquefied petroleum gas shipping services has fleet of nine vessels and has generated $14.6 million in revenues since October 2004. Cantor Fitzgerald is lead manager on the deal.

IDT Spectrum ((GIGZ)), a wireless network designer, registered for an initial public offering on Monday. For the nine months ended April 2005, the company has produced $1.3 million in sales. WR Hambrecht is the deal manager.

Celldex Therapeutics ((CDEX)), a vaccine developer, withdrew its registration statement for an IPO on Wednesday. The company cited unfavorable market conditions as the reason for the withdrawal.

Janney Montgomery and ThinkEquity Partners were slated as the underwriters on the deal.