The IPO Buzz: Biggest IPO Week of the Year

The stock market’s wild swings on the drama in Europe have been well documented. But under the radar, the U.S. IPO calendar quietly built itself up to nine deals from only three this time a week ago.
 
Flipping back through the history book to almost a year ago, the weeks of Dec. 5, 2010, and Dec. 12, 2010, each produced nine IPOs, according to the U.S. Securities and Exchange Commission filings. That topped off 2010 with 165 companies going public in the U.S. capital markets. This was well above 2009 when only 63 IPOs were priced, but still below the 2000-2009 annual average of 182.5 IPOs.
 
Hype vs. Hope
This week’s calendar has two deals that will attract media attention and two others that appear to be on the IPO professionals’ “Wanted” list.
 
The headliners are Angie’s List (ANGI – proposed) and Delphi Automotive PLC (DLPH – proposed) while Manning & Napier (MN- proposed) and Mattress Firm Holding (MFRM – proposed) round out the marquee.
 
Angie’s List, based in Indianapolis, was formed in 1995 to provide customer ratings on over 550 businesses to its users. The company, which has about 692 employees, reported a net loss of $17.4 million on revenues of $24 million for the three months ended Sept. 30, 2011, compared with a net loss of $8.1 million on revenues of $15.5 million for the same period a year ago. Note: Angie’s List reported an accumulated deficit of $160.6 million as of Sept. 30, 2011.
 
Bankers plan to offer 8.79 million shares at $11 to $13 each to raise about $105.5 million. The company plans to offer 6.25 million shares and selling shareholders plan to offer 2.54 million shares.
 
The IPO is expected to be priced on Wednesday evening, Nov. 16, and to trade on Thursday morning on the NASDAQ Global Market under the proposed symbol “ANGI.” The lead manager is BofA Merrill Lynch.
 
Delphi Automotive PLC, based in Kent, UK, was formed in 2011 as a holding company for the U.S.-based automotive parts manufacturer formed in 1994. The company has about 102,000 employees. It reported net income of $911 million on revenues of $12.1 billion for the nine months ended Sept. 30, 2011, compared with net income of $612 million on revenues of $10.2 billion for the same period a year ago.
 
Bankers plan to offer 24.1 million shares at $22 to $24 each to raise about $553.8 million. The IPO is expected to be priced on Wednesday evening, Nov. 16, and to trade on Thursday morning on the New York Stock Exchange under the proposed symbol “DLPH.” Joint-lead managers are Goldman, Sachs and J.P. Morgan.
 
Manning & Napier, based in Fairport, N.Y., was formed in 1970 as an independent financial services firm offering equities, fixed income, and asset portfolio services to investment trust funds, mutual funds, and separately managed accounts. The company has about 450 employees. It reported net income of $29.7 million on revenues of $85.8 million for the three months ended Sept. 30, 2011, compared with net income of $14.3 million on revenues of $63.2 million for the same period a year ago.
 
Bankers plan to offer 12.5 million shares at $15 to $17 each to raise about $200 million. The IPO is expected to be priced on Thursday evening, Nov. 17, and to trade on Friday morning on the New York Stock Exchange under the proposed symbol “MN.” The lead manager is BofA Merrill Lynch.
 
Mattress Firm Holding, based in Houston, is a specialty retailer of mattresses and related products. The company, formed in 1986, operates about 680 stores in 49 markets in 23 states. The company believes it was ranked first in 2010 among the top 100 U.S. furniture stores for both growth in store count and percentage increase in sales, according to “Furniture Today.” The company has about 2,040 employees. It reported net income of $4.7 million on net sales of $331.8 million for the 26-week period ended Aug. 3, 2011, compared with net income of $104,000 on net sales of $235.9 million for the same period a year ago.
 
Bankers plan to offer 5.56 million shares at $17 to $19 each to raise about $100 million. The IPO is expected to be priced on Thursday evening, Nov. 17, and to trade on Friday morning on the NASDAQ Global Market under the proposed symbol “MFRM.” Joint-lead managers are Barclays Capital, UBS Investment Bank and William Blair & Company.
 
This week’s IPO calendar includes another five offerings (check out IPOScoop.com’s IPO calendar) and who knows what might happen? After all, this is Wall Street.
 
Stay tuned. 
 
 
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do they trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.