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IPOs getting a buzz kill?

Going into the summer, it looked like the IPO market was poised for a resurgence. For example, the Blackstone Group (NYSE: BX) said that it planned on taking eight companies public.

Despite the enthusiasm, things haven't panned out. According to the Wall Street Journal [a paid publication], five of the last nine deals for October priced below their ranges. In fact, last week AEI wasn't even able to pull off its offering.

Continue reading IPOs getting a buzz kill?

China Real Estate grabs a spot on the NASDAQ

From 2004 to 2008, the total gross floor area of residential properties sold in China increased at 13.4% annually. Some of the drivers included: improved property rights, government reforms, rapid urbanization and rising affluence.

As a result, there is lots of demand for useful real estate data and consulting services. And, the leading provider is China Real Estate Information.

Well, today the company went public in the US, raising $216 million. The IPO price was $12 (between the price range of $11.80 to $13.80). So far in today's trading, the shares of China Real Estate are up 15% to $13.80.


Continue reading China Real Estate grabs a spot on the NASDAQ

Private equity biz back in action

Up until the credit crisis, private equity firms had it made. They had plenty of leverage to play with and could load up their acquisition targets with it. So, they could realize a fantastic return on equity, mitigate their own risks, and show that they were the studs of the Street.

Then, all that went away. Credit markets dried up, and private equity companies lost their acquisition fuel. The numbers aren't as big as they used to be, but it looks like the private equity market is back in action.

Continue reading Private equity biz back in action

RailAmerica IPO loses steam

A railroad IPO? Kind of sounds like we are going back to the 19th century, huh?

But it's true. On Maonday, RailAmerica launched its IPO. The company issued 22 million shares at $15 each (the price range was $16 to $18).

RailAmerica is the largest owner of short line and regional freight railroads in North America, with about 7,500 miles of track in 27 US states and three Canadian provinces.

All in all, RailAmerica has a diversified base. There are roughly 1,800 customers and the company distributes a myriad of products, like paper, metals, chemical and coal.

Continue reading RailAmerica IPO loses steam

Education Management: goes back to IPO school

Education Management Corp., a for-profit provider of post-secondary education, has hit the IPO market once again (the first public offering was in the mid 1990s). This time, the company has issued 20 million shares at $18 per share. The price range was $18 to $20.

Education Management owns 92 schools across the country, including organizations like the Art Institute of Pittsburgh, Brown Mackie Colleges and Argosy University. In all, there are about 111,000 students.

Interestingly enough, Education Management went private back in June 2006, in a $3.4 billion deal. The private equity sponsors included Goldman Sachs (NYSE: GS) and Providence Equity.

Continue reading Education Management: goes back to IPO school

Shanda wins $1 billion in the IPO game

One of the fastest growing sectors in the Chinese economy is online gaming, and, the leading player in the market is Shanda (NASDAQ: GAME).

With much investor anticipation, the company's shares hit the U.S. market today in a big-time IPO. The company priced 83.5 million shares at $12.50, making it a billion-dollar offering (the only one this year)

Shanda has a variety of games -- including 20 multi-player online role-playing games (MMORPGs) and 11 advanced casual games. In fact, there are plans to launch 16 more MMORPGS and eight advanced games.

Continue reading Shanda wins $1 billion in the IPO game

A123 Systems: From the lab to a mega IPO

A123 Systems (NASDAQ: AONE) got its start back in 2001 in Dr. Yet-Ming Chiang's laboratory in MIT. Along with two others -- Gilbert N. Riley, Jr., and Ric Fulop -- he saw a huge opportunity to build new battery technology. While it took six years to hit the market, it was well worth the effort.

Today, A123 launched its IPO (here's a profile on the deal). The company sold 28.1 million shares at $13.50 each. With this slug of capital, A123 can continue to build out its operations and capitalize on the growth opportunities.

Continue reading A123 Systems: From the lab to a mega IPO

IPOs this week: Heaviest action since 2007?

After an excruciating dry spell, the IPO market is ready for lots of action this week. It looks like the equities markets are finally recovering from the financial implosion that began last September.

So, here's a look at some noteworthy deals:

A123 Systems: The company develops rechargeable lithium-ion batteries, allowing for cleaner and more efficient energy. As a testament to its technology, the company recently received a $249 million grant from the federal government. Marquee investors include General Electric (NYSE: GE), Qualcomm (NASDAQ: QCOM), and Motorola (NYSE: MOT).

Continue reading IPOs this week: Heaviest action since 2007?

KAR Holdings: Used car auction company revs up for an IPO

From 2004 to 2008, the number of vehicles sold at auctions in the U.S. ranged from 9.4 million to 9.7 million per year. And there are no signs that this will change.

It's certainly great news for Kar Holdings, which is the number two auction operator in the space. Now, the company has filed to go public (here's a profile on the deal).

Kar has 214 physical auction locations as well as a variety of websites (which allow for real-time auctions). Through this system, the company facilitated the sale of more than 3.2 million cars last year.

Continue reading KAR Holdings: Used car auction company revs up for an IPO

rue21 looks for some IPO buzz

With a name like rue21, the company must be cool, right? Well, it is. rue21 is a specialty apparel operator that is focused on the fickle young crowd -- that is, those between 11 and 17 who want to look "21." Or, for older people who want to feel "21."

Capitalizing on things, rue21 has filed to go public. And it should be a hot offering.

Continue reading rue21 looks for some IPO buzz

Archipelago: Another e-learning company to launch an IPO

While the IPO market has been meager over the past year, there still have been some bright spots, such as the offerings of e-learning companies. Some of the notable deals include Bridgepoint Education (NYSE: BPI) and Grand Canyon Education (NASDAQ: LOPE). The shares of both companies are up over 40% since their IPOs.

Well, to get a piece of the action, another e-learning operator has filed to go public: Archipelago Learning.

Continue reading Archipelago: Another e-learning company to launch an IPO

eBay seeks a buyer for Skype

While eBay (NASDAQ: EBAY) said earlier this year that it was planning to spin off Skype in an initial public offering in 2010, it is now being reported that eBay is looking for a buyer willing to pay $2 billion or more for the internet telephone service provider.

Those interested in a buyout may include Andreesen Horowitz and Index Ventures, which were early investors in Skype before its eBay acquisition in 2005. A group of well-known venture capital and large private equity firms are pooling resources to join the bid, according to a source close to the deal.

Continue reading eBay seeks a buyer for Skype

Plains Capital: An IPO to payoff a TARP loan?

Over the past few months, one of the hottest sectors has been the financials. And to capitalize on things, Wall Street is looking to the IPO market. So, this week Plains Capital Corp. filed to go public, planning to raise $140 million.

Founded in Lubbock, Tex., in 1987, Plains Capital has had a nice growth path. The company has bulked up its assets through acquisitions, as well as by adding new offerings (such as mortgage origination and even wealth management). In fact, the bank has been profitable for the past 21 years. Currently, Plains Capital has $4.4 billion in assets and $2.9 billion in deposits.

Continue reading Plains Capital: An IPO to payoff a TARP loan?

Toys 'R' Us and Dunkin' Donuts in line for IPOs?

In the wake of last week's public offering of Dollar General, more IPOs are expected to be coming down the pipeline as private equity firms seek a monetary return on investments made during the boom years. Speculation is that Toys "R" Us and Dunkin' Donuts could be next.

Toys "R" Us Inc. is owned by Bain Capital, KKR, and Vornado Realty Trust (NYSE: VNO). The world's leading dedicated toy and baby products retailer was a public company from 1978 until its acquisition by the private equity consortium in July 2005 for $6.6 billion. It has more than 1,500 stores in 33 countries, and its businesses include Babies "R" Us, eToys.com, and FAO Schwarz, the latter two acquired earlier this year. Main competitors include privately owned KB Toys, as well as big-box retailers Target Corp. (NYSE: TGT) and Wal-Mart Stores Inc. (NYSE: WMT).

Continue reading Toys 'R' Us and Dunkin' Donuts in line for IPOs?

Happy B-Day for Google's IPO

Time flies, huh? Five years ago, Google, Inc. (Nasdaq: GOOG) hit the public markets, making its founders -- Larry Page and Sergey Brin -- officially billionaires.

The offering price was $85. And from there, the stock zoomed. The all-time high came in November 2007, when Google's stock price reached $741.79 (for a market cap over $220 billion).

Of course, the Google IPO was fairly unique. In fact, there was a open letter to investors in the prospectus. And, the message was that Google is certainly not a "conventional" company.

Continue reading Happy B-Day for Google's IPO

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Last updated: November 11, 2009: 06:25 AM

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