With 10 new IPOs slated to debut this week, we spoke with Francis Gaskins, Director of Research for Equities.com, to get his thoughts on the standouts to watch.
Largest IPO of the Week
HD Supply Holdings (HDS), based in Atlanta, Georgia, scheduled a $1.25 billion IPO with a market capitalization of $4.3 billion at a price range mid-point of $23.50 for Thursday, June 27, 2013.
HDS is one of the largest industrial distributors in North America. HDS was a 2007 private equity buyout from Home Depot (HD), which retained a 12.5% equity interest at the time. Q1 ’13 revenue was up 13% vs Q1 ’12. Pro forma adjusted quarterly earnings were $29 million.
Two in Enterprise Information Technology
CDW Corp (CDW), based in Vernon Hills, IL, scheduled a $600 million IPO with a market capitalization of $3.6 billion, at a price range mid-point of $21.50 for Thursday, June 27, 2013.
As a systems integrator, CDW supplies software and hardware to a large customer base. Gross margins are very low, 17%, which suggests there is not a lot of ‘value-add’ in their offerings. Revenue was up only 4% for Q1 ’13 vs Q1 ’12 to $2.4 billion.
Luxoft Holding (LXFT), based in Moscow, RU, scheduled a $70 million IPO with a market capitalization of $554 million, at a price range mid-point of $17 for Wednesday, June 26, 2013.
LXFT is a leading provider of software development services and innovative IT solutions. Although based in Moscow, during Q1 ’13 LXFT derived 45.6% of sales from clients located in Europe, 42.0% from clients in North America, and 12.4% from clients in other geographies.
Revenue increased 16% to $315 million for fiscal 2013 (ended March) vs fiscal 2013. Net income increased only 3%.
Two Debuts in Video-Digital
Tremor Video (TRMR), based in New York, NY, scheduled a $90 million IPO with a market capitalization of $582 million, at a price range mid-point of $12 for Thursday June 27, 2013.
TRMR delivers in-stream video advertising on behalf of a diversified base of brand advertisers in the United States.
Revenue increase 47% to $25 million for Q1 ’13 vs Q1 ’12, and gross margin increased to 44% from 32%. TRMR appears to have a current technology lead in the in-stream video ad market, based on performance-based pricing. However, those kinds of leads are seldom fixed in stone.
GDC Technology Ltd (GDCT). based in North Point, Hong Kong, scheduled a $75 million IPO with a market capitalization of $299 million, at a price range mid-point of $13 for Thursday, June 27, 2013.
GDCT has the largest installed based of digital cinema servers for movie theaters. Lucas & Spielberg believe the movie theater business is facing an ‘implosion’. At the price range mid-point of $13 GDCT has a P/E multiple of 10.7 times 2012 earnings: the business is seasonal.
Three in Healthcare
NanoString Technologies (NTSG), based in Seattle, WA, scheduled a $76 million IPO with a market capitalization of $204 million, at a price range mid-point of $14 for Wednesday, June 26, 2013.
NTSG makes diagnostic machines and consumables users by researchers to learn about cancer to publish papers.
NTSG is in the process of introducing a proprietary diagnostic machine, which is based on research fed back to NTSG by its research customers. The first molecular diagnostic product, the Prosigna Breast Cancer Assay, was introduced in Europe in September 2012.
Esperion Therapeutics (ESPR), based in Plymouth, MI, scheduled a $63 million IPO with a market capitalization of $197 million, at a price range mid-point of $14 for Wednesday, June 26, 2013.
ESPR is developing a drug to minimize the side effects and intolerance of cholesterol lowering statins. The executive chairman and Chief Scientific officers is a co-discoverer of Lipitor, the best selling statin.
Prosensa Holding B.V. (RNA), based in Leiden, NL, scheduled a $60 million IPO with a market capitalization of $408 million, at a price range mid-point of $12 for Friday, June 28, 2013.
RNA is working on a medical solution to Duchenne muscular dystrophy (DMD), a genetic disease. DMD occurs mostly in boys. Symptoms typically appear between ages 1-4 years old.
The results of clinical trials may indicate that drisapersen may lead to stabilization of the disease
Two Others to Watch
Noodles (NDLS), based in Broomfield, CO, scheduled a $76 million IPO with a market capitalization of $399 million, at a price range mid-point of $14 for Friday, June 28, 2013.
NDLS is a high growth, fast casual restaurant concept offering lunch and dinner within a fast growing segment of the restaurant industry.
NDLS’s after-tax profit margin was 1% for Q1 2013, 1.7% for calendar 2012. Q1 ’13 revenue was up 16% vs Q1 ’12.
Silvercrest Asset Management Group (SAMG), based in New York, NY, scheduled a $62 million IPO with a market capitalization of $150 million, at a price range mid-point of $13 for the week of June 24, 2013.
SAMG is a relatively small money manager. In a sense, SAMG is damaged goods because it tried to IPO November 14, 2012 and failed. However, SAMG did have a good March quarter and acquired more assets to manage.
Ten new IPOs are scheduled for the week of June 24th. The full IPO calendar is at IPOpremium.
Trial and paid & trial subscribers get early, complete financial analysis. Sign up here
Read Next
