Summer IPO Lull Ends

Yordanka
24 Sep, 2005
New York City

The traditional summer IPO slowdown finally ends at the end of September. Ikanos managed a strong debut and traded 10% above offer price on Thursday. Global Cash Access jumps 7% and North Pointe Holdings closes flat.

147 initial public offerings have been priced so far this year. Of the total 147 IPOs, 86 are currently trading up, 44 are down and 17 are trading flat from the offer price. A total of 5 IPOs priced and 3 new filed the week of September 19th, 2005.

There are 13 deals scheduled to price this week, hoping to raise about $1 billion. A gourmet coffeehouse chain’s IPO grabs attention, while the healthcare sector participates with four deals from pharmaceutical and diagnostic companies and a small medical publishing firm.

Horizon Lines, Sunesis Pharmaceuticals, Global Partners and TRX, which were expected to price last week, are now slated to try this week.

IPO PERFORMANCE

Semiconductor developer Ikanos Communications Inc. ((IKAN)) priced its IPO of 6.4 million shares at $12 per share, at the high end of the estimated range, raising $77 million.

Ikanos’ common stock began trading on Wednesday on the Nasdaq. The company’s shares rose 8.3% in their market debut on Thursday to close at $13 per share.

The California-based company had set the planned offering at 6.4 million shares within $10-$12 each.

The company has granted the underwriters an option to purchase up to 960 thousand additional shares at the initial public offering price to cover over-allotments. The deal's managers were led by Citigroup and Lehman Brothers. Deutsche Bank and Thomas Weisel acted as co-managers.

Ikanos is a leading developer and provider of highly programmable semiconductor solutions that enable fiber-fast broadband services over telephone companies' existing copper lines. For the six months ended June 30, the company's loss descended to $4.14 million from $7.15 million for the same period in 2004.

The company’s shares gained 3.8% to close at $12.46 per share on Friday.

Financial institution Nexity Financial Corporation ((NXTY)) also rose in their market debut. The company priced in the middle of its expected range of $15-$17 per share on Wednesday.

The Birmingham-based company priced its IPO of 1.5 million shares at $16 a share. Nexity's shares are trading on NASDAQ. The shares closed at $24.51, up 36% from the offer price on the first day of trading.

The company’s shareholders sold 200 thousand shares. Raymond James conducted the offering. The company closed at $18 on Friday, up 12.5% from its IPO price.

The initial public offering of Global Cash Access ((GCA)) was priced at $14 per share on Thuesday, at the upper end of the estimated price range. The company has filed for an offering of 16.1 million shares within a range of $12-$14 a share.

The company offered 9 million shares, while existing stockholders, including Karim Maskatiya, Robert Cucinotta, Walter Kortschak and Charles Fitzgerald, sold nearly 7.1 million of the shares. Goldman Sachs and J.P. Morgan were the lead managers on the deal.

The Las Vegas-based company is the largest operator of cash dispensing machines for casinos in the United States. The company closed at $14.96 on Friday, up 6.9% from its IPO price.

Property and casualty insurer North Pointe Holdings ((NPTE)) priced its offering of 4 million shares at $12 each, at the low end of its $12-$14 range, raising $48 million.

The company’s shares opened 2.2% above the price at $12.26 on the Nasdaq. SunTrust Robinson was the lead manager on the deal. The stock has begun trading on the Nasdaq.
The company published an estimated loss of $1.4 million from Hurricane Katrina at the end of August. The Southfield-based company closed almost flat at $12.03 on Friday, up 0.25% from its IPO price.
The initial public offering of the modular office space provider Williams Scotsman International ((WLSC)) priced 15.3 million shares at $16 per share on Monday, at the low end of the estimated $16-$18 price range.
The lead underwriters on the deal were Citigroup, Lehman Brothers and CIBC World Markets. The company’s the stock has begun trading on Thursday on Nasdaq. The company’s shares closed almost flat at $16.05 on Friday, up 0.3% from the IPO price.

IPO CALENDAR – week of September 26th

State National Bancshares ((SNBI)), a bank holding company, plans to offer 1.6 million shares within a price range of $24-$26 per share, in a bid to raise $40 million. Keefe Bruyette Woods and Sandler O'Neill will lead the underwriting.

Ituran Location and Control ((ITRN)), a stolen vehicle recovery company, plans to offer 4.8 million shares within a price range of $12.50-$14.50 per unit, in a bid to raise $64.8 million. UBS Investment Bank will act as the lead manager on the deal.
SkinMedica ((SKMD)), a skin product developer, plans to offer 5.3 million shares within a price range of $11-$13 a share, in a bid to raise $63.6 million. SG Cowen and Piper Jaffray will head up the list of underwriters on the deal.

Avalon Pharmaceuticals ((AVRX)), a drug developer, plans to offer 2.75 million shares within a price range of $10-$12 per share. Originally the company intended to sell 4.5 million shares, but cut their number in the beginning of September. Avalon expects to raise up to $30.3 million in the offering. Legg Mason will be the lead underwriter on the deal.

Caribou Coffee ((CBOU)), the famous coffeehouse chain, plans to offer 5.4 million shares within a price range of $13-$15 per unit, in a bid to raise $75.6 million. Merrill Lynch and Thomas Weisel will be the lead underwriters on the deal.

Genomic Health ((GHDX)), a life science company, plans to offer 5.0 million within a price range of $12-$14 a share, in a bid to raise $65 million. JP Morgan and Lehman Brothers will be the underwriters on the deal.

Global Partners ((GLP)), an oil and gas distributor, plans to offer 4.9 million units within a price range of $20.50-$22.50 per share in a bid to raise $105.4 million. Lehman Brothers will act as the lead underwriter on the deal.

Taleo ((TLEO)), a provider of web-based staffing services, plans to offer 6.7 million shares within a price range of $14-$16 per share, in a bid to raise $100.5 million. Insiders plan to sell 1.3 million shares on the offering. Citigroup will lead the group of underwriters on the deal.

VistaPrint ((VPRT)), a graphic designer, plans to offer 10.0 million shares within a price range of $9-$11 per unit, in a bid to raise $100 million. Goldman Sachs and Bear Stearns will be the lead underwriters on the deal.

WebMD Health Holdings ((WBMD)), a provider of health information services, plans to offer 6.9 million shares within a price range of $13.50-$15.50 a share, in a bid to raise $100 million. Morgan Stanley, Citigroup and Goldman Sachs will be the managers on the deal.

Horizon Lines ((HRZ)), a container shipper, plans to offer 12.5 million shares within a price range of $10-$12 per share, in a bid to raise $137.5 million. Insiders will offer 4.1 million shares on the IPO. Last week the company cut the number of shares from 15.6 million and the price range from $15-$17 per share. Goldman Sachs and UBS Investment Bank will head the list of underwriters on the offer.

Sunesis Pharmaceuticals ((SNSS)), a biotechnology company developing anti-tumor drugs, plans to offer 6.0 million shares within a price range of $9-$11, in a bid to raise $60 million. Lehman Brothers will act as the lead manager on the deal.

TRX Inc. ((TRXI)), a transaction processor, plans to offer 6.8 million shares within a price range of $9-$10 a share, in a bid to raise $68 million. Last week the company narrowed the price range from originally estimated $11-$13 per share. Insiders plan to offer 3.4 million shares. CS First Boston will be the lead underwriter on the deal.