The IPO Buzz: Fear Narrows the Field

A quick glance at last week’s IPO calendar and this week’s highlights its selectivity.
Caution and the Cloud
Last week, bankers had planned to offer two deals. One was Global Market Group Limited (GMC – proposed), a Guangzhou, China-based provider of B2B e-commerce platforms for Chinese manufacturers. It didn’t make it out the door – “postponed due to market conditions.”
And the other deal was Cornerstone OnDemand (CSOD – proposed), a Santa Monica, California-based software provider of learning and talent management solutions. Cornerstone popped for an opening day gain of 46.7 percent -– a good one in any kind of market.
The key words: “cloud computing.” Technology looks to be “in.” Here’s what happened, in case anybody missed the action.
Cornerstone filed to price 10.5 million shares at $9 to $11 each. When Cornerstone went public, it priced 10.5 million shares at $13 per share – above the top of its filing range. The stock opened on Thursday, its first day, at $18 per share. Cornerstone closed its opening day $19.07.
Now with that in mind, let’s look ahead to this week.
Three’s Company, Four’s A Crowd
The IPO calendar for the week of March 21 initially listed four deals. By Friday, March 18, one had gone missing into the land of postponements. It was TMS International (TMS – proposed), a provider of outsourced steel services.  The reason was “due to market conditions.”
Rounding out the calendar:
Preferred Apartment Communities (APTS – proposed) is an Atlanta-based real estate investment trust, or REIT. The deal has been squeezed in size to $45 million from $75 million. Since its July 2010 filing, book runners have been flipping through a revolving door. It has had three different lead managers. Preferred Apartment expects to price 4.5 million shares at $10 each during the week of March 21.
Tranzyme (TZYM – proposed) is a Durham, North Carolina-based clinical-stage biopharmaceutical. The company reported 2010 revenues of $8.5 million from licensing and research, a loss of $7.3 million and an accumulated deficit of $84.4 million, according to its prospectus. Tranzyme expects to price 5 million shares at $11 to $13 each Wednesday evening to trade Thursday morning.
And here are those magic words – “cloud computing.” Some sources say the business of the company named below  business is somewhat related to cloud computing, which refers to a variety of online services, applications and solutions that can be used without investing in hardware:
ServiceSource International (SREV – proposed) is a San Francisco-based provider of solutions to technology companies to manage their service contracts. The company expects to price 11.9 million shares at $7.50 to $9 each on Thursday evening to trade Friday morning.
But this week, it almost goes without saying. The focus will be on Japan – and Libya.
Disclosure: Neither the author nor anyone else on the staff has a position in any stocks mentioned, nor do they trade or invest in IPOs. The author and staff do not issue advice, recommendations or opinions.