During the Labor Day-shortened week, six companies posted proposed pricing terms and five announced pricing dates:
- A123 Systems (NASDAQ: AONE – proposed), a Watertown, Massachusetts-based manufacturer of rechargeable lithium-ion batteries and battery systems, set terms to price its IPO of 25.7 million shares at $8 to $9.50 each to start trading on Thursday, Sept. 24.
- Apollo Commercial Real Estate Financial (NYSE: ARI – proposed), a New York City-based real estate financing company, set terms to price its IPO of 20 million shares at $20 each to start trading on Wednesday, Sept. 23.
- Artio Global Investors (NYSE: ART – proposed), a New York City-based asset management company, set terms to price its IPO of 23.4 million shares at $24 to $25 each to start trading on Thursday, Sept. 24.
- Colony Financial (NASDAQ: CLNY – proposed), a Los Angeles-based real estate financing company, set terms to price its IPO of 25 million shares at $20 each to start trading on Wednesday, Sept. 23.
- Select Medical Holdings (NYSE: SEM – proposed), a Mechanicsburg, Pennsylvania-based operator of specialty hospitals and outpatient rehabilitation clinics, set terms to price its IPO of 33.3 million shares at $11 each to $13 each to start trading on Friday, Sept. 25.
Sign of Better Times
Talescris BioTherapeutics Holdings (NASDAQ: TLCR – proposed), a Research Triangle Park, North Carolina-based producer of plasma-derived protein therapies, set terms to price its IPO of 44.7 million shares at $18 to $20 each, but had no pricing date -– yet.
But that’s minor.
Consider this: On July 20, 2007 — over two years ago -– Talescris filed its S-1 to go public. It looks as if market conditions will finally let the deal step out onto the IPO runway.
The Street’s Other Runway
Wall Street had another runway that was heavily traveled last week. It came from the secondary calendar.
Investment bankers priced 16 secondary offerings, with 10 coming on Friday, according to various reports. All but a couple “worked” – the Wall Street jargon for deals that traded at premiums from their offering prices.
There was a reason for such magical aftermarket performances. The -game plan is to price deals “in the hole,” below their previous closes and hope to see them trade at premiums the following morning.
And this leads to another secondary that some call an IPO, or is it an IPO that some call a secondary?
On Thursday, Sept. 3, Banco Santander (Brasil) S.A., a São Paulo-based major full-service bank in Brazil, filed for an offering to raise $200 million in the form of American Depositary Shares (ADS). The securities will be offered as units and are being called an “initial public offering.”
Here’s the catch.
Consider what its preliminary prospectus stated: “Each ADS will represent one unit. Each unit represents 55 common shares and 50 preferred shares. The principal trading market for our common shares and preferred shares is the BM&FBOVESPA. Our common shares and preferred shares are listed on the BM&FBOVESPA under the symbols “SANB3” and “SANB4”, respectively.”
In other words, you can hop down to Brazil and buy the common and preferred shares ahead of the unit’s offering date — just like you can do with a secondary in the United States.
In addition to the above, there are nearly 70 deals in the IPO Pipeline waiting to take a walk down the IPO runway. Stay turned.
IPOScoop subscribers will be kept up to date on the S-1/A amended filings, changes in SCOOP ratings and when bankers finalize the pricing dates.