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All in all, it's been a tough IPO market this year. Even top companies have had trouble pulling off their offerings.But recently, there have been some signs that things are improving. Just look at today's public offering of Sensata Technologies (ST). The company issued 31.6 million shares at $18 (the price range was $18-$20). So far in today's trading, the stock is up 3.4%.
A spin-off of Texas Instruments (TXN), Sensata is a major developer of sensors and controls for autos and industrial products. Some of the brands include Klixon, Airpax and Dimensions.
Sensata also has a strong global footprint, with 53% of revenues from outside the Americas. Although, there is some customer concentration. Roughly 40% of revenues come from ten companies, such include biggies like Ford (F). Also, Sensata continues to post losses and suffered a 20% reduction in revenues last year to $1.1 billion. The debt load is hefty $1.9 billion.
Despite all this, Sensata should see a pick-up in growth as the auto industry rebounds.
This deal is also a nice win for Bain Capital, which purchased the company in 2006 for $3 billion.
Tom Taulli advises on business tax preparation and is also the author of a variety of books, including The Complete M&A Handbook
. His website is at Taulli.com.
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