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11 IPOs Planned in Next 2 Weeks Could Raise $12.8B

Alex Finkelstein

Posted by Alex Finkelstein 09/22/09 12:04 PM EST
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(NEW YORK, NY) -- Five real estate-related companies are among 11 corporations planning to offer initial public offerings on Wall Street that could raise capital totaling $12.8 billion in the next two weeks.

Industry analysts say if all 11 IPOs reach market, it would be the largest event of its kind in 18 months. Of the 11 IPOs, five corporations are real estate-related.

The last time U.S.-listed IPOs raised that much in one week was in March 2008 when credit card operator Visa Inc (V.N) went public in a $19.6 billion IPO, according to Reuters.

U.S. IPOs began to come back this spring after six months of near drought amid the world financial crisis.

Next week alone, eight IPOs are scheduled to announce offerings totaling $3.5 billion. They are:

  • A123 Systems (Nasdaq: AONE) is offering 25,680,501 shares and expects the offering price to be between $8.00-$9.50 per share. A123 designs, develops, manufactures and sells advanced, rechargeable lithium-ion batteries and battery systems.

  • Apollo Commercial (NYSE: AIR) is offering 20,000,000 shares and expects the offering price to be $20 per share. Apollo Commercial Real Estate Finance, Inc. is a newly organized commercial real estate finance company that has been formed primarily to originate, invest in, acquire and manage senior performing commercial real estate mortgage loans, commercial mortgage-backed securities, or CMBS, commercial real estate corporate debt and loans and other commercial real estate-related debt investments in the U.S. We refer to these asset classes as our target assets.

  • Artio Global Investors Inc. (NYSE: ART) is offering 23,400,000 shares and expects the offering price to be between $24-$26 per share. Artio is an asset management company that provides investment management services to institutional and mutual fund clients.

  • Colony Financial (Nasdaq: CLNY) is offering 25,000,000 shares and expects the offering price to be $20 per share. Colony Financial is a newly organized real estate finance company that will acquire, originate and manage a diversified portfolio of real estate-related debt instruments.

  • Foursquare Capital Corp. (Nasdaq: FSQR) is offering 25,000,000 shares and expects the offering price to be $20 per share. Foursquare Capital is a newly-formed corporation focused on acquiring, financing and managing a portfolio of commercial mortgage-backed securities, or CMBS, residential mortgage-backed securities, or RMBS, commercial and residential mortgage loans, other real estate-related securities, various other classes of asset-backed securities, or ABS, and other financial assets.

  • Select Medical Holdings Corporation (NYSE: SEM) is offering 33,333,333 shares and expects the offering price to be between $11-$13 per share. Select Medical Holdings is an operator of both specialty hospitals and outpatient rehabilitation clinics in the United States based on number of facilities.

  • Shanda Games (Nasdaq: GAME) is offering 63,043,500 ADSs and expects the offering price to be between $10.50-$12.50 per share. Shanda Games is China's leading online game company in terms of the size and diversity of our game portfolio.

  • Vitacost.com (Nasdaq: VITC) is offering 11,000,000 shares and expects the offering price to be between $11-$13 per share. Vitacost.com is an online retailer and direct marketer of health and wellness products, including dietary supplements such as vitamins, minerals, herbs or other botanicals, amino acids and metabolites, as well as cosmetics, organic body and personal care products, sports nutrition and health foods. Scheduled to price their offerings Oct. 6 and Oct. 7 are Spanish bank Santander (SAN.MC), insurance risk specialist Verisk Analytics Inc VRSK.O and biotech Omeros Corp (OMER.O)

These three IPOs below alone could total $9.1 billion in the following week.

  • Santander said the IPO for its Brazilian unit, Banco Santander (Brasil) SA, could raise up to $7.3 billion. Santander, Spain's biggest bank, set out plans to list 16.2 percent of its Brazilian unit in the South American country's biggest ever public offering, selling 525 million units in New York and Sao Paulo, each representing 55 common shares and 50 preferred shares, according to a prospectus.

  • Verisk, a New Jersey-based company that collects actuarial and underwriting data related to U.S. property and casualty insurance risks, says in an updated prospectus filed with U.S. regulators that it expects to sell 85.3 million shares for $19 to $21 apiece, for expected proceeds of $1.7 billion, and list them on Nasdaq.

  • Omeros, which makes central nervous system anti-inflammation products, says it plans to sell 6.82 million shares for between $10 and $12 in a $75 million IPO to be managed by Deutsche Bank Securities. The Omeros IPO is set to price on Oct. 7 and list on Nasdaq.

All the shares in the Verisk IPO are being sold by Verisk's existing shareholders, which include insurance companies American International Group Inc (AIG.N), The Hartford Financial Services Group (HIG.N), ACE Group Holdings (ACE.N) and Warren Buffett's Berkshire Hathaway Inc (BRKa.N) (BRKb.N).

Verisk Analytics' revenue rose 15 percent to $503.7 million in the first six months of 2009 over the year-earlier period, while net income rose 12 percent to $90.9 million over the same period.

Recent IPOs by risk analytics firms have included the January 2008 offering by RiskMetrics Group Inc (RMG.N) and the November 2007 IPO by MSCI Inc (MXB.N), a spinoff of Morgan Stanley. (MS.N)

RiskMetrics closed 18.1 percent below its IPO price on Monday while MSCI was 52 percent above its IPO price.



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