Based in Fort Worth, TX, Athlon Energy ($ATHL) scheduled a $300 IPO with a market capitalization of $1.6 billion at a price point mid-range of $19, for Friday, August 2. 2013.
Six other IPOs were scheduled for the week of July 29. The full IPO calendar can be found at IPOpremium.
S-1 filed July 22, 2013
> Manager, Joint Managers: Citigroup; Goldman; BofA Merrill; UBS; Wells Fargo
> Co-Managers: Barclays; Credit Suisse; RBC; Scotiabank – Howard Weil; Tudor, Pickering; Apollo Global Securities; CIBC; Credit Agricole CIB; FBR; Lebenthal Capital; Mitsubishi UFJ Securities; Simmons; Stephens
BUSINESS
ATHL is an exploration and production company, with oil currently contributing over 80% of revenue.
ROLL-UP
A significant portion of ATHL's historical growth has been achieved through acquisitions. Since ATHL's inception in August 2010, ATHL has completed two significant acquisitions and seven bolt-on acquisitions.
VALUATION
|
Valuation Ratios |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
|
annualizing Q1 '13 |
Cap (mm) |
Sls |
Erngs |
BkVlue |
TanBV |
in IPO |
|
Athlon Energy |
$1,596 |
7.3 |
124.7 |
2.6 |
2.5 |
19% |
|
Jones Energy (JONE) |
$555 |
2.5 |
462.5 |
0.9 |
1.2 |
34% |
JONE IPO'd July 25, at $15 which was 17% below price range mid-point, and traded recently below $14. ATHL wants to IPO at a significant premium to JONE. JONE is more in natural gas. ATHL is mostly in oil.
CONCLUSION
Recent oil prices are trending up, so the rating on ATHL neutral to positive at the price range mid-point.
To put the above conclusions and observations in context, the following is reorganized, edited, and summarized from the full S-1.
PRINCIPAL STOCKHOLDERS
Principal stockholders are the Apollo Funds, which will own 68% post-IPO.
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