Wall Street closes out the second quarter of 2015 with the largest IPO calendar of the year. It has 16 deals that could raise over $2.6 billion. Now that’s a “Sweet 16” scenario that even the toughest Wall Street bankers could love.
Looking back, the largest previous calendar was for the week of July 28, 2014, with 22 IPOs. That one expected to raise $6.67 billion. The Synchrony Financial (SYF) offering of 125 million shares priced at $23 each raised $2.9 billion, which pumped up the dollar volume. In the end, not every deal got out the door; 17 of the 22 IPOs were priced and traded.
That brings us to the present and this week’s calendar. There are three carryovers from last week. Another three deals are on everybody’s “most wanted” list. So let’s go to the featured attractions.
Alarm.com Holdings (ALRM – proposed), AppFolio (APPF – proposed) and TransUnion (TRU – proposed) are getting early star billing, and there is a sleeper – Glaukos (GKOS – proposed).
Security for the Smart Home
Alarm.com Holdings, based in Vienna, Virginia, is a cloud-based service provider of a multi-tenant software-as-a-service, or SaaS, platform that lets home and business owners secure their properties as well as automate and control a broad array of connected devices through a single intuitive user interface. The service is designed for the growing market in the United States of connected homes or “smart homes” in which the home security system, the lights and the thermostat can be controlled remotely via smartphone, tablet, laptop or a PC. Alarm.com has more than 2.3 million residential and business subscribers; it connects to more than 25 million devices.
Formed in 2003, Alarm.com reported a net income of $3 million on revenues of $46 million for the three months ended March 31, 2015, versus a net income of $4.3 million on revenues of $36.9 million for the same period a year ago.
Bankers are expected to price 7 million shares of Alarm.com 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: Alarm.com Holdings)
Taming the Paper Chase
AppFolio, based in Goleta, California, is a provider of cloud-based software solutions for small and medium-sized businesses in the property management and legal industries or verticals. The company’s property management software provides small and medium-sized property managers with an end-to-end solution to their business needs. The company’s legal software gives solo practitioners and small law firms a streamlined practice and case management solution, allowing them to manage their practices and case load within a flexible system.
Formed in 2007, AppFolio reported a net loss of $3.6 million on revenues of $19.4 million for the three months ended March 31, 2015, versus a net loss of $1.2 million on revenues of $11 million for the same period a year ago.
Bankers are expected to price 6.2 million shares of Appfolio at $12 to $14 each on Thursday evening to trade on the NASDAQ Global Select Market on Friday morning.
(For more information, please click here: Appfolio)
Miles and Miles of Credit Files
TransUnion, based in Chicago, is one of the three major consumer credit reporting agencies enabling lenders to determine borrowers’ creditworthiness. The company maintains the credit histories of more than 500 million people in 25 countries, which it uses to help banks, insurance providers, retailers and others manage risk and reduce fraud.
Formed in 1968, TransUnion reported a net loss of $6.6 million on revenues of $353.1 million for the three months ended March 31, 2015, versus a net loss of $14.7 million on revenues of $303.4 million for the same period a year ago.
Bankers are expected to price 29.5 million shares of TransUnion at $21 to $23 each on Wednesday evening to trade on the NASDAQ Global Select Market on Thursday morning.
After the IPO, affiliates of Advent International Corp., a global private equity firm, and Goldman Sachs & Co. “will continue to own a majority of the voting power of all outstanding shares of our common stock,” according to the prospectus.
(For more information, please click here: TransUnion)
High-Tech Treatments for Glaucoma
Glaukos, based in Laguna Hills, California, is an ophthalmic medical technology company. The company is focused on the development and commercialization of products and procedures designed to treat glaucoma. Glaukos believes it has pioneered Micro-Invasive Glaucoma Surgery, or MIGS, to revolutionize the traditional glaucoma treatment and management paradigm. It launched the iStent, its first MIGS device, in the United States in July 2012. The company is leveraging its platform technology to build a portfolio of micro-scale injectable therapies designed to address the complete range of glaucoma disease states and progression.
Formed in 1998, Glaukos reported a net loss of $1.5 million on revenues of $14.7 million for the three months ended March 31, 2015, versus a net loss of $4.3 million on revenues of $8.2 million for the same period a year ago.
Bankers are expected to price 5.4 million shares of Glaukos at $13 to $15 each on Wednesday evening to trade on the New York Stock Exchange on Thursday morning.
(For more information, please click here: Glaukos)
Looking into the week of June 29, the IPO calendar has only two deals. But there’s no need to fret. 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.