In a nutshell, here’s what happened:
· 11 companies filed plans to go public. They expect to raise $1.2 billion.
· 8 companies filed amendments updating their filings. They expect to raise $5.6 billion.
· 5 IPOs moved onto the calendar with pricing dates.
· 7 IPOs were priced.
· 5 finished their opening day of trading as winners, one was unchanged, and the other a loser.
· 16.7 percent was the average opening-day gain for all 7 IPOs priced last week.
Not a bad week for the first full week of October. And what can we expect for this week? It could prove to be interesting.
Here’s what we know. The IPO calendar has five deals waiting to be priced. They plan to raise over $3.6 billion and the investment professionals see a few as “IPOs of Interest.”
One is a natural gas pipeline limited partnership planning to raise about $3 billion, another is a cloud-computing company, and the other is a 3-D printing manufacturer.
Plains GP Holdings, L.P. (PAGP – proposed) is a recently formed Delaware limited partnership. The company is based in Houston. Upon completion of the offering, Plains GP Holdings will own 21.1 percent of the limited partner interests in Plains All American Pipeline, which directly owns all of the incentive distribution rights and indirectly owns the 2 percent general partner interest in Plains All American Pipeline (NYSE: PAA), a publicly traded limited partnership that is engaged in the transportation, storage, terminalling and marketing of crude oil and refined products, as well as the processing, transportation, fractionation, storage and marketing of natural gas liquids. PAA also owns and operates natural gas storage facilities. For the six months ended June 30, 2013, Plains GP Holdings reported pro forma income of $818 million on pro forma revenues of $20.9 billion.
Underwriters plan to offer 128 million Class A shares of Plains GP Holdings at $22 to $25 each to raise $3 billion. The book-runner told IPOScoop.com on Friday, Oct. 11, that the deal has been accelerated to be priced on Tuesday evening and trade Wednesday morning on the New York Stock Exchange. The joint-lead managers are Barclays, Goldman Sachs, J.P. Morgan, BofA Merrill Lynch, Citigroup, UBS Investment Bank and Wells Fargo Securities. The co-managers are: Baird, Oppenheimer, Stifel, BBVA, BNP PARIBAS, DNB Markets, ING, Mitsubishi UFJ, Mizuho, Piper Jaffray, PNC, Scotiabank-Howard Weil, SMBC Nikko, SOCIETE GENERALE, SunTrust Robinson Humphrey, BB&T, CIBC, Ladenburg Thalmann, Regions, Simmons, Stephens, Tudor Pickering Hold and U.S. Capital Advisors.
(Note from its prospectus: “Upon the closing of this offering, we expect to pay quarterly distributions at an initial rate of $0.14904 per Class A share ($0.5962 per Class A share on an annual basis).”)
Life in the Cloud
Veeva Systems (VEEV – proposed) is a Pleasanton, California-based global provider of industry-specific, cloud-based software solutions for the life sciences industry. Veeva’s solutions enable pharmaceutical, veterinary health and other life sciences companies to realize the benefits of modern cloud-based architectures and mobile applications for their most critical business functions, without compromising industry-specific functionality or regulatory compliance. For the three months ended July 31, 2013, Veeva Systems reported net income of $6 million on revenues of $49.6 million, compared with net income of $4.2 million on revenues of $29.5 million for the same period a year ago. Founded in 2007, the company has about 593 employees.
Underwriters plan to offer about 13.1 million shares of Class A common stock of Veeva Systems at $16 to $18 each to raise about $170 million. The company plans to sell about 9.7 million shares and selling shareholders plan to sell about 3.3 million shares. The IPO is expected to be priced on Tuesday evening and trade Wednesday morning on the New York Stock Exchange. The joint-lead managers are Morgan Stanley and Deutsche Bank Securities. The co-managers are: Pacific Crest Securities, Stifel, BMO Capital Markets and Canaccord Genuity.
Driven by 3-D
voxeljet AG (VJET – proposed) is a Friedberg, Germany-based provider of high-speed, large-format 3D printers and on-demand parts services to industrial and commercial customers. The company’s 3-D printers employ a powder binding, additive manufacturing technology to produce parts using various material sets, which consist of particulate materials and proprietary chemical binding agents. The company’s 3D printing method was used to create three models of the rare Aston Martin DB5 from the early 1960s to double for the original vehicle while shooting action scenes for “Skyfall,” the 2012 James Bond film. For the six months ended June 30, 2013, voxeljet reported a net loss of €376,000 on revenues of €4.5 million, compared with net income €320,000 on revenues of €4.6 million for the same period a year ago. Founded in 1999, the company has about 87 employees.
Underwriters plan to offer 6.5 million American Depositary Shares (ADS) of voxeljet at $13 to $15 each to raise $91 million. The company plans to sell 5.6 million ADS and selling shareholders plan to sell 900,000 ADS. The IPO is expected to be priced on Thursday evening and trade Friday morning on the New York Stock Exchange. The joint-lead managers are: Piper Jaffray and Citigroup. The co-managers are: Cowen and Stephens.
Looking into next week, the calendar has one IPO, just like this time last week. However, two IPOs posted expected pricing terms late Friday afternoon, and could land on the calendar soon.
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.