The IPO Buzz: Doing the Turkey Time Warp

Before getting into this week’s traffic, or lack thereof, let’s take a look in the rearview mirror.
*In 2013, the Thanksgiving holiday week produced no IPOs and only one the following week.
*In 2012, the Thanksgiving holiday week produced two IPOs and none the following week.
*In 2011, the Thanksgiving holiday week produced one IPO and only one the following week.
*In 2010, the Thanksgiving holiday week produced five IPOs and just one the following week. You know, there’s always an exception to every rule.
Blank Checks, Drugs and Home Decor
Now back to the present to look at this week’s traffic. It depends upon a person’s interpretation of an initial public offering when considering what’s on the IPO calendar during this holiday-shortened week. The calendar could have two deals – or one offering – or none.
The two names being bandied about are CB Pharma Acquisition and CVSL.
CB Pharma Acquisition (CNLMU – proposed) is a Burlington, Massachusetts-based “blank check” company recently formed for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities. The promoters are focusing on specialty pharma and generic drug industries. The company plans to offer 4 million units at $10 each. Each unit will consist of one ordinary share, one right to receive one-tenth (1/10) of an ordinary share on the consummation of an initial business combination and one redeemable warrant.
Here is the rub: Some do not put “blank check” offerings under the IPO umbrella.
CVSL (CVSL) is a Plano, Texas-based company engaged in the direct-selling business offering a line of products for the home, including pottery, cookware, wrought iron and other home decor products; nutritional supplements and skin care products; hand-crafted spices; a line of tools that are designed for women, as well as home security monitoring services, and a line of food products through a network of independent sales representatives. The company plans to offer 6.7 million shares at $8 to $10 each.
Note: CVSL’s common stock is scheduled to trade on the NYSE MKT. It is making a leap from the obscurity of OTCQX Marketplace, where it has been trading since February 2012. On Nov. 14, 2014, the stock traded at $13.90 per share.
Here’s the rub: Some don’t consider a stock currently trading on another exchange an IPO.
That’s it.
Looking into the week of Dec. 1, 2014, the calendar has one deal looking to raise $60 million. But more names could pop onto the calendar by the time that Monday, Dec. 1, rolls around.
Stay tuned.
As for this week, the staff of wishes everyone a Happy Thanksgiving!
Disclosure: Neither the author nor anyone else on the staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and staff do not issue advice, recommendations or opinions.