The IPO Buzz: The IPO Train Runs on Time

The calendar for the week of June 9 lists eight IPOs, which expect to raise about $1.8 billion. Don’t look now, but June 2014 is getting off to a fast start.
June by the Numbers
The June calendar has produced 192 IPOs since 2001, after the Internet bubble had burst, according to U.S. Securities and Exchange Commission filings. That makes 15 IPOs an “average” June, and that number is already in the crosshairs for 2014. Last week’s calendar produced three IPOs; eight more are set for this week, and another four IPOs are on tap for the following week. That adds up to 15 – an “average” June. And yes, the world is still waiting for Alibaba to announce its pricing terms.
Worth noting: There are stories out there that Alibaba is pointing to August 8 – the eighth day of the eighth month. Eight is considered a lucky number in China. A double 8 – an 88 – is considered very lucky. Actually this sounds more plausible than other stories we have been hearing.
Dividends, Mobile Magic and Jobs
Back to this week: The IPO professionals are reportedly focusing on three deals – Abengoa Yield plc (ABY – proposed); MobileIron (MOBL – proposed) and Zhaopin Ltd. (ZPIN – proposed).
Abengoa Yield plc is a Brentford, UK-based dividend play in the electric utility sector. It was formed in 2013 to serve as the primary vehicle through which Abengoa will own, manage and acquire renewable energy, conventional power and electric transmission lines and other contracted revenue-generating assets, initially focused on North America (the United States and Mexico) and South America (Peru, Chile, Uruguay and Brazil) as well as Europe (Spain). Note: Starting in the third quarter of 2014, the company plans to pay a quarterly dividend that will initially be set at $0.2592 per share, or $1.04 per share on an annualized basis, to yield 4 percent, based on the mid-point of its $25-to-$27 price range. (For more information, please click here: Abengoa Yield plc)
MobileIron is a Mountain View, California-based company that invented a purpose-built mobile IT platform for enterprises to secure and manage mobile applications, content and devices while giving their employees a choice of device, privacy and a native user experience. Translation: MobileIron software makes it easier to work on a mobile device, whether it’s on an iPhone, an iPad, an Android or a BlackBerry. (For more information, please click here: MobileIron)
Zhaopin is a Beijing-based provider of an online recruitment Website and human resources services in China. It’s been described as the largest online job service in China. With over 74 million registered users, the company is the second-largest provider measured by revenues in 2013, according to the iResearch Public Data. (For more information, please click here: Zhaopin Ltd)
Energy and Plastics
Rounding out the list on this week’s calendar:
Aspen Aerogels (ASPN – proposed) is a Northborough, Massachusetts-based provider of high-performance aerogel insulation used mostly in large-scale energy infrastructure facilities. (For more information, please click here: Aspen Aerogels)
Memorial Resource Development (MRD – proposed) is a Houston-based independent natural gas and oil company focusing on the exploitation, development, and acquisition of natural gas, NGL and oil properties with most of its activity in the Terryville Complex of North Louisiana. Note this from its prospectus: “We do not anticipate declaring or providing any cash dividends to holders of our common stock in the foreseeable future.” (For more information, please click here: Memorial Resource Development)
Nordic American Offshore Ltd. (NAO – proposed) is a Hamilton, Bermuda-based company formed in October 2013 to acquire and operate platform supply vessels with an initial focus of operations in the North Sea. Its ships are to be used for transporting supplies and equipment to and from offshore installations such as drilling rigs. (Note: The offering is called an IPO, but some consider this a follow-on offering. Its common shares are traded on the Norwegian OTC List, an over-the-counter market that is administered by a subsidiary of the Norwegian Securities Dealers Association, under the symbol “NAO.” On May 30, 2014, the closing price of its common shares was 102 Norwegian Kroner (“NOK”) per share, which was equivalent to approximately $16.73 per share based on the Bloomberg Composite Rate of NOK5.9785 per $1.00 in effect on that date.)(For more information, please click here: Nordic American Offshore Ltd.)
Trinseo S.A. (TSE – proposed) is a Berwyn, Pennsylvania-based materials company engaged in the manufacture and marketing of emulsion polymers and plastics, including various specialty and technologically differentiated products. (For more information, please click here: Trinseo S.A.)
Looking into the week of June 16, the calendar has four IPOs so far. They are expected to raise about $1.4 billion. But more names could pop onto the calendar by the time that Monday, June 16, rolls around.
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