With 12 IPOs already launched this month and another seven looking to be priced over the next two weeks, July’s traffic is headed to the record book as “well above average.”
Since 2001, July’s monthly calendar has generated 204 IPOs, according to the U.S. Securities and Exchange Commission filings. That makes an “average” July amount to 14.6 deals and the median works out to be 12 IPOs. That’s what we have so far this year and there’s two more weeks to go.
Where the Blue Buffalo Roam
This week has six IPOs – five new faces at the new-issues window and a carryover from last week. One deal stands out from the rest as “the pick of the week,” according to the IPO players. It is Blue Buffalo Pet Products (BUFF – proposed.)
Blue Buffalo Pet Products is a Wilton, Connecticut-based pet food company. The company believes it is the No. 1 brand in the wholesome natural market segment for cats and dogs with about 6 percent of the overall pet food industry’s market share in the United States. Founded in 2002, Blue Buffalo reported net income of $30.1 million on net sales of $248.8 million for the three months ended March 31, 2015 versus net income of $31.2 million on net sales of $226.3 million for the same period a year ago. Note: All the shares are being offered by insiders. The company will not receive any of the proceeds from the offering. Bankers plan to price 29.5 million shares at $16 to $18 each on Tuesday evening to trade on the NASDAQ Global Market on Wednesday morning.
(For more information, please click here: Blue Buffalo Pet Products
An Online Money Tree
The next IPO comes from an industrial sector that has been outperforming the underlying stock market over the last 52 weeks. The sector is banking and the IPO is Live Oak Bancshares (LOB – proposed). Consider the following:
- The Dow Jones U.S. Banking Index closed Friday, July 17, 2015, at 352.79, UP 15 percent from 306.67 on July 21, 2014.
- The S&P 500 Index closed Friday at 2,126.64, UP 7.75 percent from 1,973.63 on July 21, 2014.
Live Oak Bancshares, based in Wilmington, North Carolina, is an established national online platform for small business lending nationwide. Since 2008, the bank has made nearly $2 billion in loans in sizes ranging from $25,000 to $5 million. Live Oak reported net income of $8.2 million, or 27 cents a share, for the three months ended March 31, 2015, versus net income of $183,000, or 1 cent a share, for the same period a year ago, according to its prospectus.
Bankers plan to price 4 million shares at $16 to $18 each on Wednesday evening to trade on the NASDAQ Global Market on Thursday morning.
(For more information, please click here: Live Oak Bancshares)
Looking into the week of July 27, the IPO calendar lists two deals, but one of them isn’t what you might consider an IPO. It is Intec Pharma Ltd. (NTEC – proposed) and its shares have been trading on the Tel Aviv Stock Exchange since 2010.
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.