The IPO Buzz: Customers’ Yachts MIA

None were seen in New York City’s harbor.
 
August’s first week raised about $885 million for six IPOs, but that was DOWN from a planned $1.1 billion. Five of the six had to be reduced in size to attract enough buyers to get the deals done.
 
Bankers collected about $50.6 million in underwriting fees and commissions.
 
By the end of the week, investors lost money. Three of the six closed unchanged from their initial offering prices and the other three landed in the loser’s column. The average loss was 3.32 percent.
 
That’s why you didn’t see any water taxis circling lower Manhattan looking for a fare to take them out to their yachts.
 
Of “Mad Men” and Landlords
The week of August 9 will be the last string of IPO shopping days before the Labor Day break.
 
The IPO calendar has seven deals looking to raise about $950 million. Among the seven, one’s out of China, one’s out of India, one’s a real estate investment trust and there are a couple that the investment professionals have on their radar screen.
 
The buzzworthy deals are MediaMind Technologies (MDMD – proposed) – a company that might have done business with Don Draper of cable TV’s “Mad Men” fame if Don had lived and worked in the age of Google — and RealPage (RP –proposed) – a software company that aims to make life easier for landlords.
 
Let’s take a look:
 
MediaMind Technologies (formerly Eyeblaster): “Advertisers and media agencies use the company’s campaign management software to create and administer rich media content, including online, mobile, and in-game advertisements. Its portfolio includes analytics tools for monitoring and measuring such metrics as display time and interaction rate. MediaMind provides professional services ranging from custom development and testing to data tracking and analysis. The company’s products have been used in advertisements for Ameritrade, Microsoft, Pfizer, and Virgin Mobile, among others.” (Attribution: Hoover’s
 
The company had a favorable second quarter. For the three months ending June 30, 2010, MediaMind reported net income of $2.9 million on revenues of $21.2 million, compared with net income of $2.4 million on revenues of $16 million for the same period a year ago.
 
The company’s industrial sector has done well this year. At the close on Friday, Aug. 6, Google’s Advertising Index was UP 7.2 percent for the year to date, compared with a modest gain of 0.85 percent for the NASDAQ Composite Index.
 
MediaMind plans to price 5 million shares at $14 to $16 each to raise $75 million. The IPO is expected to start trading on Wednesday, Aug. 11, 2010.
 
RealPage: “The company’s on-demand software platform is designed to make the property management process more efficient, enabling owners and managers of single- and multi-family rental properties to oversee their accounting, leasing, marketing, pricing, and screening operations from a single, shared database. The centralized system helps with managing incoming and outgoing residents and overseeing property functions, from hiring plumbers to training staff. Its customers include most of the top 10 largest multi-family property management companies in the U.S. (Attribution: Hoover’s
 
The company’s second quarter was mixed. For the three months ending June 30, PealPage reported net income of $164,000 on revenues of $39.7 million, compared with net income of $910,000 on revenues of $30.9 million for the same period a year ago.
 
The company’s industrial sector has been a laggard. At the close on Friday, Aug. 6, Google’s Software & Programming Index was DOWN 11.7 percent for the year to date, compared with a gain of 0.85 percent for the NASDAQ Composite.
 
RealPage plans to price 13.5 million shares at $13 to $15 each to raise $189 million. The company plans to offer 6 million shares and selling shareholders plan to offer 7.5 million shares. The IPO is expected to start trading on Thursday, Aug. 12.
 
Out of China:
China Kanghui Holdings (KH – proposed) is a provider of orthopedic implants in China.
 
China Kanghui plans to price 6.675 million American Depositary Shares at $9.25 to $11.25 each to raise about $68 million. The company plans to offer 5.3 million ADS and selling shareholders plan to offer 1.3 million ADS. The IPO is expected to start trading on Wednesday, Aug. 11.
 
Out of India
MakeMyTrip Limited (MMYT- proposed) believes it is the largest online travel company in India.
 
MakeMyTrip plans to price 5 million shares at $12 to $14 each to raise about $65 million. The company plans to offer about 3.8 million shares and selling shareholders plan to offer about 1.2 million shares. The IPO is expected to start trading on Thursday, Aug. 11.
 
Overall, the week could have some surprises, some disappointments and, maybe, some smiles.
 
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.