The IPO Buzz: Where the Action Is

In today’s financial markets, the weekly IPO Calendar has been coming together on Mondays. With any luck, one or maybe two faces will appear on Friday afternoon. For this week, there is just a single name slated to be priced. But the calendar could follow the pattern that has developed in the past few weeks. Let’s take a look.

On Friday, May 1st, the IPO Calendar had two names. Then came Monday morning, May 4th, and the action started. By week’s end, seven IPOs had made their debuts.

Fast forward to Friday, May 8th. The IPO Calendar had only one name on it – a $100 million “blank check” offering. But don’t give up hope.

Big Names Rising

Buried in last week’s filings were a couple of household names. One was Albertsons Companies (ACI proposed) and the other was Warner Music Group (WMG proposed). Each filed updated prospectuses.

Albertsons Companies, based in Boise, Idaho, is one of the largest U.S. food retailers. It has 2,260 stores in 34 states and the District of Columbia. The company operates 20 iconic banners with on average 85 years of operating history. Among the brands are Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw’s, Star Market, United Supermarkets, Market Street and Haggen.

In its May 5th filing, Albertsons posted its fiscal 2019 financials. No proposed offering terms were announced.

Warner Music Group, based in New York City, is one of the world’s leading music entertainment companies. The company has iconic record labels, including Atlantic Records, Warner Records, Elektra Records and Parlophone Records. In addition, it has Warner Chappell, its global music publishing business. Warner Chappell has a catalog that includes timeless standards and contemporary hits, representing works by over 80,000 songwriters and composers, with a global collection of more than 1.4 million musical compositions.

In its May 7th filing, Warner Music updated its six-month financials as of March 31, 2019. In addition, the company announced its proposed symbol and its stock exchange for trading. No proposed offering terms were announced.

Worth noting: To file an updated prospectus with the SEC, companies typically spend millions in filing fees. They don’t do this just to pass the time. When you see an amended filing, this means the company is serious about going public.

Banking on 5G & More

The only deal listed on this week’s IPO Calendar is the blank check deal. It is Novus Capital (NOVSU proposed).

Novus Capital, based in Indianapolis, is a blank check company or special-purpose acquisition company (SPAC) that was formed recently to invest in target companies involved in 5G communication, virtual reality, A.I. (artificial intelligence), cloud computing, machine learning, hardware and software distribution, and value-added customized logistics services.

The company plans to offer 10 million units at $10 each on Wednesday evening, May 13th, to trade Thursday, May 14th, on the NASDAQ.

(For more information on these companies, please check the IPO profiles on IPOScoop’s website.)

Third Week of May

This brings us to the week of May 18th and the IPO Calendar is blank so far. But some names could pop onto the IPO Calendar when the U.S. Securities and Exchange Commission’s filing window opens again for business on Monday, May 11th.

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.