I don't want to jinx anything by declaring victory early, but things are looking up in the IPO market. This week there are nine companies slated to offer shares to the public in IPO's. Some offerings, one has to love–straight from the Warren Buffet's "I only invest in companies that have products that I can understand."
The best known consumer company pursuing an IPO is Annie's Inc. with the symbol BNNY–as in Annie's bunny logo. Annie's is one stock my step-daughter should own. She is addicted to their macaroni and cheese. It's her favorite dinner before swim practice. Easy to make, flavorful, and who doesn't love cheese and pasta? Take a look at the road show, which references almost every successful retail and 'natural' publicly owned company.
Annie's is raising $75m, between 16 and 18 per share, for a total valuation after the IPO of $283 million. Of the approximately 5 million shares being offered, four million are for selling shareholders–a sure sign of a bull market. The underwriters are Credit Suisse and J.P. Morgan, William Blair, RBC Capital Markets, Stifel Niclaus Weisel, and Canaccord Genuity.
Another favorite is CafePress Inc. I am a customer of their products, including a 'love a pug' license plate holder. CafePress is an internet retailer of customized products for everything from T-shirts to water bottles. The company is raising $81 million at a $272 million valuation. The underwriters are J.P. Morgan, Jeffries, Cowen, Janney Montgomery Scott and Raymond James.
Another notable company is Millennial Media Inc., which provides technology and services for delivering advertising over mobile devices. Millennial is raising $102 million at an approximately $750 million. Revenues last year were $100 million, with profitability in the fourth quarter. Millennial's sell is their top tier customer set, and the huge growth of the mobile space. Underwriters are Morgan Stanley, Gldman, Barclays Capital, Allen & Company and Stifel Nicolaus Weisel.
Check in at the end of the week. We are hopeful that the market's route on Friday does not halt the march of these companies towards their IPOs.