ASCN Abescon Bancorp (PK)

U.S. investors are gearing up for what could be the busiest IPO period in more than a year, with nine companies set to begin trading this coming week.

If all the deals begin trading, it will be the largest amount since nine went public in December 2010.

Although the offerings span a range of industries and sizes, the two standouts from the pack are from organic and natural-food company Annie's Inc., best known for its boxes of macaroni and cheese that feature a bunny on the label, and Millennial Media Inc., which provides the technology and services necessary for delivering advertising over mobile devices.

Annie's, which wants to raise as much as $80 million on the New York Stock Exchange by listing as "BNNY," has the No. 1 natural and organic market position in four product lines: its mac and cheese, snack crackers, fruit snacks and graham crackers.

Although its products started off in 1989 with its mac 'n cheese marketing to a subsegment of general consumers, its brand has grown to the point where it is sold in mainstream stores such as Target Corp. (TGT) and Costco Wholesale Corp. (COST), with 125 products in more than 25,000 retail locations in the U.S. and Canada. In the nine months that ended Dec. 31--Annie's fiscal year ends March 31--net sales increased 21% to $98 million and gross profit rose 25% to $60 million; net income fell by nearly half to $7.7 million due to the effect of income taxes on its bottom line.

Millennial Media, which wants to raise up to $112 million on the NYSE under the symbol "MM," gets paid by advertisers to deliver their ads to mobile-device users, and Millennial pays application developers a fee for the use of their ad space. According to IDC, a market research firm, Millennial is the second-largest mobile display advertising platform in the U.S., with a 16.7% market share, and the only one of the three principal mobile advertising platform companies that is not affiliated with a particular operating system or set of devices--it works on a range of devices, from Apple to Android. As the company delivers ads, it collects anonymous data about users, audiences and the effectiveness of ad campaigns, which helps it target its ads at consumers.

Its advertiser clients include 23 of the top 25 national advertisers as ranked by Advertising Age magazine, based upon U.S. ad spending in 2010. In 2011, its revenue doubled to $103.7 million, gross margin improved to 39% from 34% in 2010, and its net loss narrowed to $287,000 from a loss of $7.1 million in 2010. The company has never been profitable since its inception in 2006, and warns that it may not ever be.

Trailing behind Annie's and Millennial are a roster of seven other deals of varying levels of interest. In terms of size, the largest deal of the week comes from industrial-parts manufacturer Rexnord Corp., which wants to raise $474 million on the NYSE under the "RXN" symbol. The company makes gears, couplings and bearings for industrial and aerospace uses, and valves and piping for water and wastewater facilities.

Hospital communication system specialist Vocera Communications Inc. wants to raise $81 million on the NYSE under the symbol "VCRA." Its systems, which include wearable voice-controlled communications badges, competes with in-building wireless telephones, a market dominated by communications companies such as Cisco Systems Inc. (CSCO), Ascom Holding Inc. (ASCN) and Polycom Inc. (PLCM).

CafePress Inc., which operates websites that allows consumers to add custom photos or words to everything from T-shirts to water bottles, is seeking to raise $81 million on the Nasdaq as "CPRS;" its business is very seasonal, and depends upon year-end holiday purchases. Subprime lender Regional Management Corp. is seeking to raise $80 million on the NYSE as "RM." The company offers a variety of loans to consumers with poor credit scores, and faces regulatory risk as more states pull back on the interest rates, fees and other rules governing loan terms they allow. Under the federal Dodd-Frank Act, the new Consumer Financial Protection Bureau has regulatory, supervisory and enforcement powers over subprime lenders that could also crimp its business.

Rounding out the week is a trio of deals related to the energy industry. Enphase Energy Inc., a solar energy management company, is planning to raise $88 million on the Nasdaq as "ENPH." The company makes microinverter technology for the solar industry that increases energy production, among other things. Fuel shipper GasLog Inc. is seeking to raise $423 million on the NYSE as "GLOG." The Monaco-based company manages and operates a fleet of 14 liquefied natural gas ships; the shipping industry has been expanding its supply of LNG carriers, which could lead to overcapacity in the future. Natural gas company Luca Technologies Inc. wants to raise $111 million on the Nasdaq as "LUCA." The company has used biotechnology to stimulate and increase gas production from existing gas wells through a demonstration pilot project. Although it inked a development agreement in December with Shell, it's still in the early stages of commercializing its technology.

-By Lynn Cowan; 202-257-2740; lynn.cowan@dowjones.com

Grafico Azioni Abescon Bancorp (PK) (USOTC:ASCN)
Storico
Da Dic 2024 a Gen 2025

Grafico Azioni Abescon Bancorp (PK) (USOTC:ASCN)
Storico
Da Gen 2024 a Gen 2025