With nine companies on the IPO calendar this week, the IPO market looks to keep up the momentum from last week, which saw eight deals completed. This week's deals include alternative energy firm Gevo (GEVO), genotyping device manufacturer Fluidigm (FLDM), hotel REIT Summit Hotel Properties (INN), specialty finance firm Imperial Holdings (IFT), and Chinese fashion designer Zuoan (ZA), as well as biotechs AcelRx (ACRX), Clarus (CLRS), and Kips Bay (KIPS). However, by far the highest profile deal is midstream energy firm Kinder Morgan (KMI), whose $2.2 billion proposed deal size is expected to make it the largest ever private equity-backed IPO on a US exchange.
Kinder Morgan is the parent of publicly traded limited partnership Kinder Morgan Energy Partners (NYSE: KMP). The partnership owns a diverse set of midstream energy assets which generate strong and stable cash flow. Through its limited partner and general partner ownership of KMP, Kinder Morgan receives about half of the total cash distributed by KMP, which will allow it to in turn pay an initial $1.16 annual dividend, yielding 4.2% at the midpoint of the IPO range. Kinder Morgan was taken private in 2007 by Goldman Sachs, Highstar, Carlyle and Riverstone, who are now selling all 80 million of the IPO shares, which are expected to price between $26 and $29. The company plans to list on the NYSE under the symbol KMI. Goldman Sachs and Barclays are the bookrunners on the IPO.
Read our full IPO Commentary.
