The IPO Buzz: Thanksgiving Egg Rolls, Anyone?

Heading a short list of four IPOs are these two: China Xiniya Fashion Limited (XNY – proposed), a Chinese provider of men’s business casual apparel, and SYSWIN (SYSW – proposed), a Chinese real estate services company. The other two new issues are leftovers from last week.
Three of the four IPOs are to be priced Monday evening to trade Tuesday. The other -– a leftover –- is being carried as “day to day.”
As if one hasn’t noticed, Chinese IPOs are “in” on Wall Street.
Since Labor Day, 43 IPOs have made their debuts in the U.S. capital markets, according to the Securities and Exchange Commission’s filings. Sixteen were China-based companies. Over this two-month period, the group has been a star performer. Check out the numbers:
Post Labor-Day Scorecard
Through the close on Friday, Nov. 19, 2010, 30 of the 43 IPOs that have come to market since Labor Day were winners. Twelve were losers and one was unchanged. The average gain was 20.9 percent from their initial offering prices.
The Chinese IPOs
As of the close on Nov. 19, 11 of the 16 Chinese companies to go public in the United States since Labor Day were winners. Five were losers. The average gain was 35.9 percent.
All Others
At the close on Nov. 19, 19 of the 27 other IPOs were winners. Seven were losers and one was unchanged. The average gain was 13.6 percent.
The swing into this week’s IPO calendar reflects investors’ interest.
New Faces at the IPO Window
China Xiniya Fashion plans to price 8 million American Depositary Shares (ADS) at $9 to $11 each to raise $80 million. Cowen and Company is the lead manager. Samsung Securities (Asia) Limited, Lazard Capital Markets and Janney Montgomery Scott are co-managers.
The Retail Apparel Industry:
On Nov. 19, 2010, the Dow Jones U.S. Apparel Retailers Index (DJUSRA) closed at 423.78, UP 20 percent from 353.23 on Nov. 19, 2009. That’s better than The Nasdaq Composite Index (.IXIC), which closed on Friday at 2,518.12 — UP 16.8 percent from 2,156.82 on Nov. 19, 2009.
SYSWIN plans to price 12 million ADS at $9.25 to $11.25 each to raise $123 million. Morgan Stanley is the lead manager. William Blair, Oppenheimer and Roth Capital Partners are co-managers.
The Real Estate Services Industry:
On Nov. 19, the Dow Jones U.S. Real Estate Services Index (DJUSES) closed at 105.09, UP 59.5 percent from 65.87 on Nov. 19, 2009. That far outruns the Nasdaq Composite Index over the same period.
Happy Thanksgiving from the staff of LLC.
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.