Eight companies are expected to go public this week, continuing the accelerated levels of deal flow seen toward the end of 2010. There were 20 IPOs completed in both November and December of last year as companies pushed to raise capital in the improved market environment. The fourth quarter's healthy debuts likely motivated others to test the market and contributed to the recent flurry of filings: 19 companies have specified pricing terms for their upcoming IPOs over the past two weeks. This week's diverse crop covers a wide range of industries, from technology (Demand Media (DMD); InterXion Holding (INXN); BCD Semiconductor (BCDS)) and media (Nielsen Holdings (NLSN); Velti (VELT)) to retail (Zuoan Fashion (ZA), agriculture (Adecoagro S.A. (AGRO)) and banking (BankUnited (BKU)). The lineup will be led by two highly anticipated floats, Demand Media (DMD) and Nielsen Holdings (NLSN), both of which have scheduled their pricings for Tuesday after the market close.
Content creation platform and search engine optimizer Demand Media (DMD) will likely generate IPO investor interest as the largest Internet company go to public since Google based on market value. With over 13,000 freelancers on tap, Demand is one of the most prolific producers of text and video content on the web. The fast-growing online platform plans to raise $113 million by offering 7.5 million shares at an estimated price range of $14 to $16. Goldman, Sachs & Co. and Morgan Stanley are the lead underwriters on the deal.
Consumer behavior analysis company Nielsen Holdings (NLSN) has also generated buzz as the largest private equity-backed US IPO in at least ten years. It plans to offer 71.4 million shares at an initial range of $20 to $22, raising $1.5 billion in gross proceeds, which will be used to pay down a portion of its $7.5 billion in outstanding debt. J.P. Morgan and Morgan Stanley are the lead underwriters on the deal.
Read our full IPO Commentary.
