initial public offerings (IPOs) trading on American exchanges

Friday, December 28, 2012

Permira completes $1.6B acquisition

Genealogy website (Nasdaq: ACOM) is being sold to the European private-equity firm Permira, for $1.6 billion, a 40 percent increase since the company first began chasing private equity interest in July. 

UK private equity giant Permira Advisers said it had completed the $1.6 billion acquisition of (NASDAQ:ACOM), the most popular genealogy websites.

Shareholders of the Provo, Utah-based approved the deal on Thursday.

The company claims to maintain more than 11 billion records included in 41 million family trees compiled by its 2 million subscribers.

Permira, with capital exceeding $30 billion, made its $32-a-share offer for in late October. That was 41 percent above the price at which management announced it was putting the company up for sale on June 5. CEO Timothy Sullivan and other senior managers will remain with the company. They said under Permira ownership, there will be funds to expand in Europe and expand their business. The company was advised by Qatalyst Partners in the sale.

Other sites in the genealogy sector include private of Israel, a venture capital-backed company that last month acquired also has a U.S. office in Provo.

Saturday, December 22, 2012

Splunk (SPLK) looks like a buy

Brian White of Topeka Capital Markets, initiated coverage of the stock with a Buy rating and a $38.25 price target.
Splunk, in White’s view, is “an emerging software platform vendor focused on turning machine data into real-time operational intelligence,” which he thinks is “an exciting play on the trend toward Big Data.”
That “operational intelligence market” may be worth $32 billion this year, writes White, citing market data from research firm IDC.
** weekly chart Dec 2012 **

below: update 1 year later, Dec 2013

The nine-year-old company may be “the next big thing in IT,” writes White, according to his chats with some customers and resellers of its software:
Described by some as the “Google” for log files, we believe Splunk has the opportunity to leverage its proprietary machine data engine technology to be a disruptive force in the IT world, competing with a host of existing solutions across areas such as business intelligence, relational data base, security and other technologies […] Splunk was founded in 2003 by Michael Baum, Rob Das and Erik Swan. The name Splunk was derived from “spelunking” or exploring caves and analogous to searching through machine data with Splunk’s software […] Essentially, Splunk’s proprietary machine data engine technology is at the core of the platform, taking the machine data and turning it into real-time, operational insights that range from customer buying patterns, potential security risks, website service levels, worker productivity, network utilization and a whole host of other instances. Splunk can better support unstructured data (IDC estimates that ~90% of data is unstructured) better than traditional relational database, enterprise applications, IT management software and security software that are focused on supporting pre-defined data structures. In our view, the biggest competitive threat to Splunk will come in the form of a start-up. […] During our research process, we found that customers begin using Splunk for a single use case and are quickly finding completely, new and different uses for the product that they had never imagined. Use cases for Splunk fall into (but are not limited to) four major buckets that include the following: (1) application management; (2) security & compliance; (3) Infrastructure & IT operations management; and (4) business & web analytics.
White also likes Splunk’s approach to how it prices, with the company letting customers use its “Splunk Enteprise” product to index half a gigabyte of data per day for 60 days for free, and then being asked to pay based on amount of data indexed. He thinks that “allows Splunk’s sales to more closely track the high growth rate of data. The average ASP for Splunk is estimated at approximately $35,000.”
White has Splunk making $193.9 million in revenue this year and losing 3 cents per share, and he offers the following observations about near-term spend and longer-term profit:
During 3QFY13, Splunk was operating at an annual revenue run rate of $208 million and the Company’s medium-term revenue target is $1 billion. In terms of profits, we believe Splunk will continue to run the Company near break-even levels in an effort to invest profits back into the business in order to capitalize on the big growth opportunities that on the horizon. That said, the Company’s long-term financial model includes 85-95% gross margin and a 25-30% operating margin profile.

Tuesday, December 18, 2012

Morgan Stanley fined $5M over Facebook IPO

Investment banking giant Morgan Stanley was fined $5 million Monday by the commonwealth of Massachusetts for violating securities laws involving the troubled stock market debut of Facebook, the Wall Street Journal reported. 

Massachusetts Secretary of State William F. Gavin accused the bank of improperly influencing the stock offering process, specifically asserting that a senior Morgan Stanley banker coached Facebook on how to share information with stock analysts who cover the social media company.

Thursday, December 13, 2012

SolarCity (SCTY) IPO rises 47% from reduced price

  • Shares of SolarCity, the solar energy company backed by entrepreneur Elon Musk, jumped nearly 50% on their first day of trading Thursday.
  • The stock soared 47% above its $8 IPO price to close at $11.79.
  • The company, which sets up financing for individuals and companies to install solar equipment, raised $92 million from its IPO — it sold 11.5 million shares at the $8 IPO price. That was a bit of a downgrade from the 10.1 million shares it expected to sell for between $13 and $15 a share.
  • SolarCity is just the latest company for Musk to bring public. His electric car company, Tesla Motors, on June 28, 2010 raised $226 million by selling 13.3 million shares at $17 a share. Shares of that company now trade for $35.05.
  • Musk is also founder of SpaceX, the aerospace company that is launching low-cost rockets into space, seen as a economical alternative to the pricey near-orbit systems previously operated by the U.S. government.
SolarCity executives and employees ring the opening bell on the Nasdaq Stock Exchange

SolarCity Corp. (SCTY) traded at $11.79 a share for a gain of 47%  over its $8 price in its initial public offering on Thursday. The IPO from San Mateo, Calif., installer of solar power systems raised $92 million by offering 11.5 million shares of common stock.

Earlier this week, SolarCity cut the price of the deal from its estimated range of $13 to $15 a share. Solar City also increased the size of the IPO from 10.07 million shares. Elon Musk, the chairman of SolarCity's board, planned to buy 1.88 million shares in the deal at the IPO price, the company said in a filing with regulators. Goldman Sachs, Credit Suisse and Bank of America Merrill Lynch served as representatives of the underwriters and joint book-running managers for the offering.

** 2 months later **

Sunday, December 9, 2012

Alon USA Partners (ALDW) started trading on the NYSE on 20 Nov 2012

Alon USA Partners, LP (ALDW) is a November 20th initial public offering (IPO) with a first year distribution yield of 26.2%.  The company is a recent spinoff from its parent, Alon USA Energy, Inc. (ALJ). The company is benefiting from robust refinery gross profit margins.

The underwriters have been granted a 30-day option to purchase up to an additional 1,500,000 common units. Goldman, Sachs & Co., Credit Suisse Securities (USA) LLC and Citigroup are acting as joint book-running managers, Jefferies & Company, Inc. is acting as lead managing underwriter and Macquarie Capital (USA) Inc. and Tudor, Pickering, Holt & Co. Securities, Inc. are acting as co-managers.

Alon USA Partners, LP (Alon USA) owns and operates refining and petroleum products marketing business. Its integrated downstream business operates primarily in the South Central and Southwestern regions of the United States. It owns and operates a crude oil refinery in Big Spring, Texas with total throughput capacity of approximately 70,000 barrels per day. The crude oil pipelines the Company utilizes consist of the Amdel, White Oil, Mesa Interconnect, Centurion and Centurion Interconnect. Its Big Spring refinery produces ultra-low sulfur gasoline, ultra-low sulfur diesel, jet fuel, petrochemicals, petrochemical feedstocks, asphalt and other petroleum products. During the year ended December 31, 2011 and the six months ended June 30, 2012, sour crude, such as West Texas Sour, represented approximately 80.4% and 80.4% of its throughput, respectively, and sweet crude, such as West Texas Intermediate, represented approximately 15.8% and 17.1% of its throughput, respectively.


Suite 1600, 12700 Park Central Drive
DALLAS, TX 75251

Thursday, December 6, 2012

Ruckus Wireless (RKUS): 3 weeks after IPO

Ruckus Wireless Inc (Ruckus) is a provider of Wi-Fi solutions. The Company’s solutions, which it calls Smart Wi-Fi, are used by service providers and enterprises to solve network challenges. The Company’s products include gateways, controllers and access points. These products incorporate its technologies, including Smart Radio, Smart QoS, Smart Mesh, SmartCell and Smart Scaling. The Company sells its products to service providers and enterprises globally, and as of December 31, 2011, had sold its products to over 16,000 end-customers worldwide. During 2012, the Company added over 4,400 new end-customers. The Company’s enterprise end-customers are typically mid-sized organizations in a variety of industries, including hospitality, education, healthcare, warehousing and logistics, corporate enterprise, retail, state and local government and public venues, such as stadiums, convention centers, airports and outdoor public areas.


350 West Java Dr.
United States
+1-650-2654200 (Phone)
+1-408-7382065 (Fax)


Tuesday, December 4, 2012

Ruckus Wireless (RKUS) started trading on the NYSE on 16 Nov 2012

Ruckus Wireless (NYSE:RKUS), a provider of Wi-Fi services, plunged 18% on its first day of trading, Friday 16 Nov 2012 .

Ruckus, which makes products to help mobile carriers and businesses improve their Wi-Fi coverage, priced 8.4 million shares at the high end of their estimated range of $13-$15 for proceeds of $126 million.