The Memorial Day break usually slows down the IPO market or brings it to a complete stop. This year is the latter. There is nothing on this week’s calendar, but May 2015’s IPO report card gets high marks.
May 2015’s calendar generated 22 IPOs that raised $4.6 billion, according to the U.S. Securities and Exchange Commission filings. That was on par with May 2014 when its calendar generated 22 IPOs that raised $4.5 billion. (For all of 2014, the calendar generated 286 IPOs that raised $85.5 billion.) May 2013’s calendar produced 28 IPOs that raised $5.99 billion.
Look at the IPO Pipeline
But there is more to May 2015’s IPO market than its calendar.
It’s the pipeline.
With one more week to go, the pipeline is shaping up well: Twenty-five companies have already filed plans to go public. They expect to raise $4.2 billion. A year ago in May 2014, 37 companies filed plans to go public. They had expected to raise $5.6 billion. In May 2013, 27 companies filed plans to go public with expectations of raising $3.9 billion.
Software, Fitness and Wings
Coming to the present and reaching into the future, some of the May 2015 filings are already attracting interest. For openers, they are: AppFolio (APPF – proposed), Fitbit (FIT – proposed) and Wingstop (WING – proposed).
AppFolio, based in Goleta, California, is a provider of industry-specific, cloud-based software solutions for small and medium-sized businesses in the property management and legal industries. The company’s property management software provides property managers with an end-to-end solution for their business needs, enabling them to manage properties quickly and easily in a single, integrated environment. AppFolio’s legal software provides solo practitioners and small law firms with a streamlined practice and case management solution, allowing them to manage their practices and case load within a flexible system. The company also offers optional, but often mission-critical, Value+ services, such as its professionally designed websites and electronic payment services, which are seamlessly built into its core solutions.
Fitbit, based in San Francisco, offers its Fitbit platform that combines connected health and fitness devices with software and services, including an online dashboard and mobile apps, data analytics, motivational and social tools, personalized insights, and virtual coaching through customized fitness plans and interactive workouts. As of March 31, 2015, the company reports it sold over 20.8 million devices since inception in 2007.
Wingstop, based in Dallas, is a high-growth franchisor and operator of restaurants specializing in cooked-to-order, hand-sauced and tossed chicken wings. It offers “11 bold, distinctive and craveable flavors on its bone-in and boneless chicken wings paired with hand-cut, seasoned fries and sides made fresh daily,” according to its prospectus. Wingstop’s concept has received numerous accolades, including recognition in 2014 as the “Best Chicken Wings” in the United States by
Food&Wine magazine, the “#3 Fastest-Growing Chain” by Nation’s Restaurant News, and the “Best Franchise Deal in North America” by QSR magazine.
Looking into the week of June 1st, the IPO calendar is clean and green. But not to worry – it has been known to fill up quickly on Monday mornings.
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.