After chancing a pause to catch its breath, the IPO market has resumed its recent frenetic pace with five new deals launching IPOs within the past few days.
Xunlei Limited (XNET) runs a consumer Internet platform for digital media in China. The company has a diverse platform, offering downloading services, streaming video, and cloud computing to a broad consumer base. The Xunlei download software controls 78% of the total market (291mm users), and the company hopes to use this platform as a springboard for its other products. Xunlei is looking to offer 7.6 million ADRs at a price range of $14 to $16. At the midpoint of the range, the company will raise $114 million and will command a valuation in excess of $1 billion. J.P. Morgan and Deutsche Bank Securities are the lead underwriters on the deal, which is expected to price Tuesday, July 19.
Zillow (Z) operates an online marketplace providing detailed real estate information on 100 million US homes and rental properties. The site has seen rapid growth in its user base, with the company quoting 17 million unique users in the month ending March 31, representing an 86% increase from the prior year period. The Seattle, Washington-based company recorded sales of $30.5 million last year, representing a 63% cumulative annual growth rate over the past 4 years. The company is offering 3.5 million shares at a price range of $12 to $14. At the midpoint of the expected range, the company will raise $45 million from the offering, while existing investors Technology Crossover Ventures and PAR Investment Partners will invest $5.5 million in a concurrent private placement. Upon completion, the company will command a market cap of $401 million. Citi is the lead underwriter on the deal, which is set to price Tuesday, July 19.
SunCoke Energy (SXC), a Sunoco spinoff, is the largest independent producer of metallurgical coke in the Americas, sourcing its coal primarily from Virginia and West Virginia. Based in Lisle, Illinois, the company is completing its fifth U.S. facility and expects to increase total cokemaking capacity to 4.2 million tons of coke per year in the US (5.9 million tons total). In 2010 SunCoke recorded $227 million adjusted EBITDA on sales of over $1.3 billion, an increase of 17% over $1.1 billion in revenue generated in 2009. The company aims to raise $186 million by selling 11.6 million shares at a price range of $15 to $17. Credit Suisse, BofA Merrill Lynch, and Goldman Sachs & Co. are the lead underwriters on the deal, which is set to price Wednesday, July 20.
Oiltanking Partners L.P. (OILT) provides oil and gas terminaling, storage, and transportation with core assets in Houston and Texas. The company, which is being carved out of global energy storage company Oiltanking, plans to pay annualized distributions of $1.35 per share, yielding 6.75% of the midpoint of the range. Oiltanking Partners is prepared to sell 10 million shares at a price range of $19 to $21. At the midpoint, the deal will generate $200 million and value the company at $778 million. Citi, Barclays Capital, and J.P. Morgan are the lead underwriters on the deal, which is expected to price Wednesday, July 13.
Skullcandy (SKUL), which sells stylized headphones and other audio products and accessories in 70 countries, increased net sales from $9.1 million in 2006 to $160.6 million in 2010, representing a compound annual growth rate of approximately 105%. At of March 31, 2011, the company expanded its distribution network to include diversified retailers such as Best Buy (BBBY), Target (TGT), Dick’s Sporting Goods (DKS), and AT&T Wireless (T). The Park City, UT-based company plans to raise $150 million by offering 8.3 million shares at a price range of $17 to $19. At the mid-point of the proposed range, Skullcandy will command a market value of $514 million. BofA Merrill Lynch and Morgan Stanley are the lead underwriters on the deal, which is expected to price Tuesday, July 19.
With these deals on the calendar and reports that other large names, such as Dunkin' Brands (DNKN), could be coming shortly, there is no post-holiday hangover for IPO activity.
