Wall Street is picking up a cue from Broadway, where the box office is booming. Look no further than U.S. Securities and Exchange Commission’s filing window. It was a busy place last week. Actually, it was the busiest week in nine months.
Consider this: Last week, 11 companies filed plans to go public. Thirteen companies filed amendments updating their IPO plans. Six companies priced their IPOs and five traded. This week’s IPO calendar has swollen to nine offerings. A week ago, you could count the number of offerings on one hand for the IPO calendar for the week of June 15: There were three offerings.
Flash back to the week of Sept. 29, 2014: Eleven companies filed plans to go public. Nine companies filed amendments updating their IPO plans. Thirteen companies priced their IPOs.
Now back to the present. What’s an IPO calendar without a “pick of the week” or two? The experts say there are two outstanding selections and two more contenders. Let’s cut to the chase. It’s showtime.
The favorites are Fitbit (FIT – proposed) and Fogo de Chao (FOGO – proposed). The contenders are 8point3 Energy Partners (CAFD – proposed) and MINDBODY (MB – proposed).
Let’s Get Physical
Fitbit, based in San Francisco, provides a tracking platform to help people become more active, exercise more, sleep better, eat smarter and manage their weight. The company believes it pioneered the connected health and fitness market starting in 2007, and since then, it says that “we have grown into a leading global health and fitness brand. As of March 31, 2015, we have sold over 20.8 million devices since inception.” According to The NPD Group, the company says it held the leading position in the U.S. fitness activity tracker market with a 68 percent share, measured by dollars, in 2014.
Formed in 2007, Fitbit reported a net income of $48 million on revenues of $336.8 million for the three months ended March 31, 2015, versus a net income of $8.9 million on revenues of $108.8 million for the same period a year ago.
Bankers are expected to price 29.9 million shares of Fitbit at $14 to $16 each on Wednesday evening to trade on the New York Stock Exchange on Thursday morning. The company plans to offer about 22.4 million shares and selling shareholders plan to offer about 7.5 million shares.
(For more information, please click here: Fitbit)
Steak With A Brazilian Accent
Fogo de Chao, based in Dallas, is a Brazilian steakhouse, or churrascaria, which specializes in fire-roasting high-quality meats using the centuries-old Southern Brazilian cooking technique of churrasco. The company opened its first restaurant in 1979 in Porto Alegre, Brazil, and its first restaurant in the United States in 1997 in Addison, Texas. Fogo operates 26 restaurants in the United States and nine in Brazil. Formed in 1979, Fogo reported a net income of $4.7 million on revenues of $65 million for the 13 weeks ended March 29, 2015, versus a net income of $2.8 million on revenues of $61.3 million for the same period a year ago.
Bankers are expected to price 4.4 million shares of Fogo at $16 to $18 each on Thursday evening to trade on The Nasdaq Global Select Market on Friday morning.
(For more information, please click here: Fogo de Chao)
A Solar Yield Play
8point3 Energy Partners, based in San Jose, California, is a limited partnership formed by First Solar and SunPower to own, operate and acquire solar energy generation projects. Upon completion of this offering, 8point3 Energy will have interests in 432 MW of solar energy projects. The company’s primary objective is to generate predictable cash distributions that grow at a sustainable rate. Formed in 2014, 8point3 Energy plans to pay a minimum quarterly distribution of $0.2097 per share – or 83.88 cents per share on an annualized basis – to yield 4.2 percent at the mid-point of its price range.
Bankers are expected to price 20 million shares of 8point3 Energy at $19 to $21 each on Thursday evening to trade on The Nasdaq Global Select Market on Friday morning.
(For more information, please click here: 8point3 Energy Partners)
Software For The Yoga Studio
MINDBODY, based in San Luis Obispo, California, is a provider of a cloud-based business management software and payments platform for the wellness services industry. MINDBODY helps its customers, which include yoga studios and personal trainers, with online booking of appointments and classes. The company services over 42,000 local business subscribers in 124 countries and territories. It employs over 250,000 practitioners who provide a variety of wellness services to over 24 million active consumers. Formed in 2001, MINDBODY reported a net loss of $11.6 million on revenues of $22.3 million for the three-month period ended March 31, 2015, versus a net loss of $10.7 million on revenues of $15.7 million for the same period a year ago.
Bankers are expected to price 7.15 million shares of MINDBODY at $13 to $15 each on Thursday evening to trade on The Nasdaq Global Select Market on Friday morning.
(For more information, please click here: MINDBODY)
Looking into the week of June 22, the IPO calendar has two deals. But there’s no need to worry. The calendar has been known to fill up quickly on Monday mornings.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.