Trustwave cancels IPO

Security-software company Trustwave Holdings Inc. has withdrawn an IPO prospectus filed three years ago.
The company was ready to price the offering and sell shares to brokerages in August 2011 but postponed the deal because of a steep drop in the stock market amid the first crisis over the debt ceiling for the U.S. government.

“As an administrative matter, Trustwave has filed to withdraw its Form S-1 Registration with the Securities and Exchange Commission which was filed in 2011," the Chicago company said. “Trustwave continues to watch market conditions and is keeping its strategic options open.”

Even though its prospectus was in limbo, Trustwave wasn't. The company has made four acquisitions since then, getting further into the security-services business. More recently, it was pulled into the spotlight in connection with the security breach at Target Corp. Trustwave's primary business is certifying that merchants are compliant with data-security rules around credit card transactions.

Since Trustwave put its IPO on ice, Chicago has enjoyed a mini-boom in tech public offerings. In the past year, Textura Corp., Gogo Inc., CDW Corp., Paylocity Holding Corp. and GrubHub Inc. all have gone public.

IPOs this week (8 Aug 2011) : 12 companies scheduled

Update : 8/12/11: Only two of 12 IPOs scheduled this week have priced: SandRidge Permian Trust (PER) and Carbonite(CARB)

10 IPOs are delayed due to market sell-off and volatility:

• Cathay Industrial Biotech Ltd.
• Enduro Royalty Trust
• HomeStreet Inc.
• InvenSense Inc.
• Loyalty Alliance Enterprise Corp.
• Tim we. SGPS S.A.
• WageWorks Inc.
• WhiteGlove Health Inc.
• Midland States Bancorp
• Trustwave

Wed 8/10/11 market stats:

Dow Jones  10,719.94  -519.83  (-4.62%)

S&P 500    1,120.76   -51.77   (-4.42%)

Nasdaq     2,381.05   -101.47  (-4.09%)

Update : 8/11/11:   Carbonite said in a regulatory filing that it now expects shares to be priced at between $10 and $11.  Last month, the company said it hoped to raise as much as $106 million in an IPO by selling shares in the company at $15 to $17 a share

The following were scheduled the week of 8 Aug 2011

1. InvenSense, which makes motion processing chips for companies such as Nintendo, plans to offer 10.5 million shares at $8.50 to $10.50 per share for a $99.75 million offering
2. Carbonite: The online backup company plans to price 6.25 million shares at $15 to $17 each for a $100 million deal.
3. Trustwave Holdings, an online security compliance company, plans to price 6.25 million shares at $15 to $17 per share.
4. Cathay Industrial Biotech, a Shanghai-based industrial biotechnology producer, plans to price 6.9 million ADRs at $12 to $14 per share for a $89.7 million offering.
5. Enduro Royalty Trust plans to price13.2 million shares at $24 to $26 per share for a $330 million offering.
6. HomeStreet, plans to offer 7.8 million shares at $22 to $24 per share.
7. Loyalty Enterprise, a China-based provider of direct marketing and customer loyalty programs for mobile carriers such as China Unicom and China Telecom, plans to offer 5.03 million ADRs at $14 to $16 per share.
8. SandRidge Permian Trust, an oil exploration and production company, plans to offer 31.5 million shares at $19 to $21 per share for a $630 million offering.
9. Timwe, a Lisbon, Portugal-based mobile monetization company, plans to offer 11.25 million shares at $12 to $14 each.
10. Postponed from last week: Midland States Bancorp, an Effingham, IL-based bank holding company, plans to offer 5 million shares at $15 to $17 per share for a $80 million offering.
11. Postponed from last week: WageWorks, San Mateo, Calif.-based provider of employee health and commuter spending benefits programs, plans to offer 5.77 million shares at $8 to $9 per share, after cutting its expected from from $12 to $14 per share, for a $49 million offering at the middle of the range.
12. Postponed from last week: WhiteGlove Health, a low-cost primary and chronic care provider, plans to offer 2.5 million shares at $9 to $13 per share for a $27.5 million offering.

Trustwave to postpone IPO planned for today

Market volatility has prompted Chicago-based data security firm Trustwave to postpone its initial public offering, which was scheduled for Thursday.

The company issued a brief statement on Wednesday evening attributing the delay to "market conditions." It offered no further details on when it might go public. Trustwave had filed for an IPO in April, seeking to raise around $100 million.

Trustwave joins a list of companies putting off their IPOs until market conditions improve. Turbulence in markets tends to be bad for IPOs because new companies without financial track records are seen as risky assets, which investors shun in downturns.

According to Renaissance Capital, a research firm that specializes in IPOs, eight of 12 companies scheduled to go public this week have postponed their debuts. Trustwave's delay brings the total to nine.

Trustwave files for IPO

(Crain's) — Chicago-based credit card security company Trustwave Inc. plans to go public and raise $100 million.

The nine-year-old company — a leading maker of software that ensures merchants are in compliance with credit card companies' security standards — filed a prospectus Thursday with the U.S. Securities and Exchange Commission.

• Website:  http://invensense.com/
• HQ: Chicago, Illinois

Trustwave's revenue soared 52% last year to $115 million, but it’s still not reporting a net profit. Last year’s loss was $2 million.

The IPO is being led by Morgan Stanley, J. P. Morgan Chase & Co., Barclays Capital, William Blair & Co. and BMO Capital Markets. One of Trustwave’s early investors, Richard Kiphart, is a longtime William Blair executive.

Trustwave posted revenue of $81.7 million in 2010 and net loss attributable to common shareholders of $6.4 million. In the first six months of 2011, Trustwave generated revenue of $47.8 million and a net loss attributable to common shareholders of $1.6 million. Current shareholders with more than 5% of stock are FTV Capital, MBK Ventures, DBRC Investments, First Analysis Funds and SRBA/Hallman Management Trust.