January 2013’s IPO calendar produced 12 pricings, according to the U.S. Securities and Exchange Commission filings. It raised $4.7 billion. January 2006 was busier. Its calendar produced 14 IPOs that raised $2.46 billion. Consider this: From 2000 through 2012, an “average” January calendar priced 6.2 IPOs and raised an “average” $1.5 billion. And there’s more to January 2013.
At Friday’s close, on Feb. 1, nine of January’s 12 IPOs were in the winner’s circle. Two were unchanged. The only loser was down 18 cents per share from its initial offering price. The average gain for the 12 January IPOs was 15.4 percent. That was about three times better than the 5.3 percent gain for the Nasdaq Composite Average.
February Opens with a Hot Trio
This brings us to February. Its first week is looking to price eight IPOs. They are expected to raise about $1.4 billion. There’s a lot to choose from, but the “word” on The Street narrows it down to three. They are: Boise Cascade (BCC – proposed), Health Insurance Innovations (HIIQ) and National Commercial Bank Jamaica (NCJ – proposed).
Boise Cascade plans to price 11.8 million shares at $16 to $18 each on Tuesday evening. The IPO is expected to start trading on Wednesday morning on the New York Stock Exchange under the proposed symbol “BCC.” The joint-lead managers are BofA Merrill Lynch and Goldman, Sachs. The co-managers are Deutsche Bank Securities, J.P. Morgan, Wells Fargo Securities, D.A. Davidson, Moelis and Piper Jaffray.
Based in Boise, Idaho, Boise Cascade is one of the largest vertically integrated wood products manufacturers and building materials distributors with widespread operations throughout the United States and Canada. Its main products include plywood and lumber. The company estimates it will report about $2.6 billion in revenue for 2012. The company was formed in 1931. It has about 4,500 employees.
Boise Cascade plans to sell all of the shares in the offering to have about 41.5 million shares outstanding after the offering.
Boise Cascade competes in the U.S. building sector, which has been hot. On Friday, Feb 1, 2013, the Dow Jones U.S. Building Materials & Fixtures Index closed at 486.86, UP 48.4 percent from 328.02, its close on Feb. 3, 2012. The S&P 500 Index was up 12.5 percent over the same period.
Health Insurance Innovations plans to price 4.7 million shares of Class A common stock at $14 to $16 each on Thursday evening. The IPO is expected to start trading on Friday morning on the NASDAQ Global Market under the proposed symbol “HIIQ.” The joint-lead managers are Credit Suisse, Citigroup and BofA Merrill Lynch. The co-manager is Raymond James.
Based in Tampa, Florida, Health Insurance Innovations offers affordable web-based individual health insurance plans and ancillary products. The company’s scalable and proprietary web-based technology platform allows for mass distribution of and online enrollment in its large and diverse portfolio of affordable health insurance offerings. Health Insurance Innovations was formed in 2003. It has about 50 employees.
Health Insurance Innovations plans to sell all of the shares in the offering. After the offering, there will be two classes of stock: 4.7 million shares of Class A common stock, owned by the public, and 8.7 million shares of Class B stock, owned by insiders.
Health Insurance Innovations competes in the U.S. insurance broker’s industrial sector. It has been slightly under- performing. On Friday, Feb 1, 2013, the Dow Jones U.S. Insurance Brokers Index closed at 134.45, UP 11 percent from 122.56, its close on Feb. 3, 2012. The S&P 500 Index was up 12.5 percent over the same period.
National Commercial Bank Jamaica plans to price 16.1 million American Depositary Shares (ADS) at $13 to $15 each on Wednesday evening. Each ADS represents 50 ordinary shares. The ADS are expected to start trading on Thursday morning on the New York Stock Exchange under the proposed symbol “NCJ.” The joint-lead managers are J.P.Morgan and Macquarie Capital The co-managers are Canaccord Genuity and CIBC.
Based in Kingston, Jamaica, W.I., National Commercial Bank believes it is the largest banking and financial services group in Jamaica. It provides its customers, who range from individuals to large corporations and government institutions, with banking, wealth management, insurance and pension fund management products and services. The bank also provides a wide range of financial products and services, including loan and investment products, deposits, remittance services, electronic banking, payment services, credit cards, structured finance, trade finance, foreign exchange, wealth management, insurance, pension fund management, annuities, and trust and registrar services. The bank was formed in 1837. It has about 2,480 employees.
The bank plans to sell about 12.5 million ADS and selling shareholders plan to sell about 3.6 million ADS. The company expects to have about 2.5 billion ordinary shares outstanding.
Worth noting: The ADS are being offered for the first time in the U.S. capital markets and people are calling the deal an IPO. Each ADS represent 50 shares of ordinary shares. The ordinary shares have been traded on the Jamaica Stock Exchange since 1986, according to its prospectus, under the symbol NCBJ. Its recent price was 21 Jamaican dollars, or about 23 cents in U.S. dollars. That would put the cost of 50 ordinary shares, or one ADS, at US$11.50.
That will bring us to next week, with a calendar of three IPOs. They are expecting to raise about $160 million. But the week is young. Under the JOBS Act, the calendar can fill up quickly.
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.