BLP Rearview Mirror: IPOs for the Period Ending April 16th

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The verdict is in:  It’s  a torn meniscus on the left side of the right knee.  The excruciating pain is caused when the “flap” is pinched by the knee cap.  Ouch.  Surgery May 1st.  Prognosis for recovery is excellent, given the location of the tear.  Whew.

Snow on New Hampshire stone walls.
Snow on New Hampshire stone walls.

Meanwhile, the markets have been swooning, but have been recovering.  The much maligned tech sector was blamed.  Typically, an overly exuberant IPO market is blamed for these market downturns, and that does not seem to be the case here.  Other than the biotech offerings, which are somewhat staged, with insiders buying a good portion of the offering, the market has not seen a lot of drama.

Snow, snow, go away and come-a-back in nine months!  There was a light covering of snow on the ground this morning, but it has since vanished.

IPOs[1]

(9 IPO’s)

Click on the Company Name for the S-1 filing and the Company Symbol for the stock chart.

Financial

Ally Financial (ALLY:  NYSE), the old GMAC, sold 95m shares at $25 per share, raising $2.38b at a valuation of $12b.  The stock recently traded at $24.19 per share.

Moelis & Company (MC:  NYSE), sold 6.5 million shares at $25 per share, raising $162.5m at a valuation of $1.36b.  The stock traded at $26.49.  A company and investment bank that I had never heard of, is an investment bank with some impressive deals under their belt.  Apparently established in 2007.  It has close to 500 employees, and is headquartered in New York, with offices throughout the world.  The founders seem to be out of UBS most recently, and DLJ before that.  This is the type of event I was hoping for when I was at Needham & Company.  Valued at two to three times sales, a very nice deal for the shareholders.  Different strokes for different folks.

Medical/Biotech/Pharma

Phibro Animal Health (PAHC:  Nasdaq) sold 11.8m shares at $15 per share raising $177m at a valuation of $567m (assuming I read the prospectus correctly concerning Class A and B shares).  The stock recently traded at $16.23 per share.

Read the following closely, if you’re concerned about the pharmaceuticals you are consuming second hand:

We believe we are the only global company with an animal health business that concentrates exclusively on animals for human consumption and are one of the few global companies offering a comprehensive range of animal health and mineral nutrition products. We believe our key products such as Stafac​®, Nicarb​®, and OmniGen-AF​® (“OmniGen”) enjoy strong brand name recognition and customer loyalty in the markets we serve. We believe our vaccines are recognized as a standard in efficacy against highly virulent disease challenges and our patented TAbic​® vaccine delivery technology provides superior convenience and logistical benefits over conventional glass bottles. The foundation of our product portfolio is based on several key proprietary molecules and formulations that are supported by additional complementary products, which help address important customer needs. As an example of our portfolio depth, we believe over 5.4 billion of the 8.5 billion broiler chickens produced in the United States in 2012 received at least one of our products.

TriVascular Technologies  (TRIV:  Nasdaq) sold 6.5m shares at $12 per share, raising $78m at a valuation of $232m.  The stock traded recently at $12.70 per share.  TriVascular Technologies was formed to treat abdominal aortic aneurysms:

The Ovation System, our solution for the treatment of AAA through minimally invasive endovascular aortic repair, or EVAR, is a new stent graft platform, providing an innovative and effective alternative to conventional devices. It is designed to specifically address many of the limitations associated with conventional EVAR devices and expand the pool of patients eligible for EVAR.

Adamas Pharmaceuticals (ADMS:  Nasdaq) sold 3m shares at $16 per share, raising $48m at a valuation of $263m.  The stock recently traded at $13.17 per share.  Adamas develops novel therapeutics for the treatment of central nervous system disorders.

Cerulean Pharma (CERU:  Nasdaq) sold 8.5m shares at $7 per share, raising $60m at a valuation of $100m.  The stock recently traded at $6.95 per share.

We are a clinical-stage oncology-focused company applying our proprietary dynamic tumor targeting platform to develop differentiated therapies. Our nanopharmaceutical product candidates consist of proprietary polymers that are covalently linked to anti-cancer therapeutics, or payloads. We believe these nanopharmaceuticals dynamically target tumors by exploiting the leakiness of new blood vessels in tumors as an entry portal into tumor tissue, followed by active uptake into tumor cells and the sustained release of the anti-cancer payload inside the tumor cells.[2]

Software & Systems

Paycom Software (PAYC:  NYSE) sold 6.6m shares at $15 per share, raising $102m at a valuation of $755m.  “Paycom is a leading provider of Human Capital Management (“HPM”) software delivered as Software-as-a-Service or SaaS.”[3]

Sysorex Global (SYRX:  ), a systems integration and consulting company sold 3.3m shares at $6 per share, raising $19.8m at a valuation of $106m.  The stock recently traded at $5.47 per share.  I guess they didn’t get the  memo that system integrators do not tend to make for robust public companies.

Sysorex Global Holdings Corp. provides a variety of IT services and technologies that enable customers to manage, protect and monetize their enterprise assets whether on-premise, in the cloud, or via mobile.   Historically Sysorex’ customer base was 100% public sector but that has changed significantly with the acquisitions we have made in 2013. [4]

Casual Dining

Zoes Kitchen (ZOES:  NYSE), out of Plano, Texas, sold 5.8m shares at $15 per share, raising $87m at a valuation of $276m.  The stock recently traded at $27.

Zoës Kitchen is a fast growing, fast casual restaurant concept serving a distinct menu of fresh, wholesome, Mediterranean-inspired dishes delivered with Southern hospitality.  Founded in 1995 by Zoë and Marcus Cassimus in Birmingham, Alabama, Zoës Kitchen is a natural extension of Zoë Cassimus’ lifetime passion for cooking Mediterranean meals for family and friends.[5]

Please send me any comments or feedback.

All the best,

Margaret Johns
Founder & Chairman

Affiliates:

Jan Robertson
SiVal Advisors, LLC

Susan Woods and Vlad Harris
Chartworth
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Margaret Johns is the Founder and Chairman of BlueLake Partners, a boutique M&A investment bank based in the Greater Boston Area.  Prior to founding BlueLake she was an employee founder and Managing Director at Needham & Company where she worked in Corporate Finance in New York City and headed up its Boston office.  She now lives in Londonderry, New Hampshire with her husband, 16 year old step-daughter and three pugs.  When she’s not working with clients, FINRA or writing blogs she competes on the Granite State Penguins Masters Swim Team, skis, rides her bike or is out walking her pugs.

Content researched, edited and reviewed on a best efforts basis.
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We make no claim to being comprehensive in our review, as the contents are companies and topics we, ourselves, find of interest.
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This newsletter is currently being proofed by Dave Henshaw, which is much appreciated. Dave is my USMS swimming lane mate, and Granite State Penguin team-mate.  He is retired from MIT, where he used to produce and proof their annual financial report.  Exactly what we need


[1] Source:  Renaissance Capital, SEC documents, Yahoo Finance. Nasdaq website
[2] Company S-1 filing.
[3] Company S-1 filing
[4] Company S-1 filing.
[5] Company S-1 filing.