The IPO Buzz: Last Run in the Summer Sun

The IPO filing window at the U.S. Securities and Exchange Commission was the loneliest place in Washington, D.C., last week. One deal was refiled, one was withdrawn, and that was it. As a result there was nothing to be added to the calendar. Nevertheless, there is one IPO for the week of Aug. 15 – and that should wrap things up for the summer of 2016.

The period from mid-August until after Labor Day is traditionally a downtime for the IPO market, and this year is no exception. Every so often, bankers take time away from Wall Street. They’re hanging out in the Hamptons, or they’re off to the south of France, or they’re soaking up some rays on beaches from Bermuda to Bali.

Now let’s get back to the present and the IPO calendar’s final run of the summer.

The deal that was added to this week’s IPO calendar was Stellar Acquisition III (STLRU – proposed). It is a “blank check” company looking to raise capital to buy an entity operating in the international energy logistics industry. This industry includes companies that specialize in international oil and gas logistics, land and maritime oil and gas transportation, and terminal and energy storage.

Bankers plan to price 8 million units at $10 each on Tuesday evening, Aug. 16, to trade on Wednesday morning, Aug. 17. Each unit consists of one share of common stock and one warrant.

A Comeback and A Withdrawal

Now let’s step back to last week’s filing window and the two companies that filed papers. One was an S-1/A amendment. The other was an RW form.

The S-1/A refiling is an IPO making a comeback from the postponed list. It is Advanced Disposal Services (ADSW – proposed), a Ponte Vedra, Florida-based solid waste disposal and recycling company.

Bankers filed an updated amendment on Aug. 11, 2016, but excluded proposed pricing terms. The new amendment replaced the Feb. 1, 2016, S-1/A, which did have proposed pricing terms to offer about 21.4 million shares at $20 to $22 each. The IPO was then placed on the calendar to be priced Wednesday evening, Feb. 10, 2016, to trade Thursday morning, Feb 11. That didn’t happen. Due to market conditions, the IPO was postponed ahead of its pricing. No one wants to revisit Feb. 11, of course, but that was the day when the three major U.S. stock indexes hit their most recent closing lows.

The RW filing was Blue Coat, a Sunnyvale, California-based provider of advanced web securities solutions. Last week, Blue Coat withdrew its June 2, 2016, filing to go public. Ten days later, on June 12, Symantec (SYMC) and Blue Coat announced that they had entered into an agreement under which Symantec would acquire Blue Coat for about $4.65 billion in cash. The filing last week on Wednesday, Aug. 10, was nothing more than putting the finishing touch on some old business.

So this wraps up “the week that was” from the SEC’s IPO filing window.

The calendar for the week of Aug. 22 was clean and green at press time. Don’t expect anything until after Labor Day, but more on that in next week’s “The IPO Buzz.”

Stay tuned.

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 opinion.