Bankers plan to offer eight IPOs for this week. They expect to raise about $1.76 billion. That might not sound like much, but if all get out the door, it will top the entire month of September.
Last month, bankers priced eight deals that raised $1.61 billion, according to U.S. Securities and Exchange Commission filings.
At the top of this week’s “most wanted” list is Compellent Technologies (NYSE: CML proposed). It’s from a hot IPO industrial sector.
Compellent Technologies, a Minnesota-based provider of network storage systems, reported surging revenues and gushing red ink -– but not to worry.
First for the numbers: For the 12 months ended June 30, 2007, Compellent reported revenues of $34.8 million, up from no revenues for the year ended Dec. 31, 2003. Compellent reported an accumulated deficit of $45.7 million as of June 30.
Here’s why “not to worry:” Data Domain (Nasdaq DDUP), a California-based provider of storage appliances for disk-based backup and network-based disaster recovery, was the most recent network storage-related company to go public. Bankers priced 7.4 million shares at $15 each on June 26. On Friday, Oct. 5, the IPO closed at $39.24 — UP 161.6 percent from its initial offering price.
And for Data Domain’s numbers: For the 12 months ended June 30, 2007, Data Domain reported revenues of $40.4 million, up from no revenues for the year ended Dec. 31, 2003. Data Domain reported an accumulated deficit of $38.1 million as of June 30.
Like a Virgin
There’s also a sleeper from the wireless telecommunication sector that some think could do well. It is Virgin Mobile USA (NYSE: VM proposed), a New Jersey-based provider of wireless communications services, offering prepaid, or pay-as-you-go, services targeted at the youth market (ages 14-34).
The company has attracted a lot of media buzz. Here’s why. Virgin Mobile was founded as a joint venture between Sprint Nextel and the Virgin Group (the company formed by Sir Richard Branson in 1970), and launched its services in July 2002. In November 2003, or 18 months later, it had signed up its one millionth customer.
The past week’s IPO traffic was full of confirmation of things to come. Consider the following:
China Digital TV Holdings (NYSE: STV) was the week’s headline grabber. On Thursday, bankers priced 12 million shares at $16 each, above its filing range of $13 to $15 per share. The IPO started trading Friday at $35 and closed at $28 — UP 75 percent from its initial offering price.
But it was not No. 1 in last week’s “winner’s circle.”
Constant Contact (Nasdaq: CTCT), a fast-growing, money- losing provider of e-mail marketing solutions, popped for a gain of 84.4 percent by week’s end. On Tuesday, bankers priced 6.7 million shares at $16 each, above its filing range of $12 to $14 each. The IPO started trading on Wednesday at $26 and closed Friday at $29.50 per share.
Worth noting: Friday was a very busy day at the SEC’s filing window. Eight companies filed amended forms announcing proposed offering terms on their pending IPOs. That raised last week’s number to 17 companies looking to move from the IPO pipeline to the IPO calendar.
With the major U.S. stock indexes flirting with new highs or hitting records, IPOs popping in the aftermarket and a stampede of companies rushing to go public, it looks as if last summer’s whispers from the syndicate desks are turning into the roar of the crowd.