IPO Roundup April 7, 2016

Demand picks up slowly for Equitas IPO; issue subscribed 0.38 times on Day 2 – The Economic Times

The Rs 2,200 crore initial public offering (IPO) of Equitas Holdings saw some pickup in demand, with 38 per cent of the issue got subscribed on Day 2.

At close, the issue had received bids for 5.26 crore shares against 13.91 crore shares on the block. By the end of Day 1, the issue had received total bids for 1.21 crore shares (9 per cent of the total issue). 

Advent International Said to Hire Banks for Cotiviti IPO – Bloomberg

Advent International Corp., a Boston-based private equity firm, is planning an initial public offering of healthcare payments processing and auditing company Cotiviti Corp. said people familiar with the matter.

The buyout firm has hired JP Morgan Chase & Co. and Goldman Sachs Group Inc. as lead coordinators on the offering, along with five other banks, said the people who asked not to be identified because the information is private. The effort is likely to value the company at about $3 billion, one of the people said. 

This Upcoming IPO Will Be the Biggest Deal of All Time

Yes, the 2016 IPO calendar has been mostly empty so far. Only eight companies went public in Q1 – down 76% from 34 deals in Q1 2015.

But there’s one upcoming IPO that will have a lasting effect on the inactive IPO market. That’s because this deal is set to become the largest stock offering inhistory.

Before we discuss this $2 trillion company, here’s what you need to know about the 2016 IPO market – and why it’s at the lowest levels since the financial crisis 

US exchange operator Bats plans IPO for next week

Bats Global Markets, the US exchange operator, is planning to list next week, according to a presentation that is being shown on its roadshow.

The Kansas City-based company, the second-largest US equity exchange and rival to the New York Stock Exchange and Nasdaq, will look to erase memories of a botched listing four years ago with a new push. Several shareholders including Bank of America Merrill Lynch, KCG, Instinet and Citigroup, will sell down 11.3m shares at between $17-$19 a share. April 15 is the likely listing date, according to a person familiar with the process,reports Philip Stafford

Exchange Operator Testing IPO Waters Again –

Electronic exchange operator BATS Global Markets has launched its second attempt at an initial public offering, setting the stage for a possible $212 million windfall for its investors.

BATS tried to sell shares to the public in March 2012 but abruptly canceled the offering because of a technical glitch. In a regulatory filing Monday, the company said it expects to sell 11.2 million shares at between $17 and $19 apiece, which would value the company at $1.63 billion to $1.82 billion.

At the midpoint, the IPO would raise about $202 million, twice the size of the attempted deal in 2012. As it did last time, BATS is listing its shares on its own exchange. 

Nutanix Poised to Break the Great Tech IPO Freeze of 2016 | The VAR Guy content from The VAR Guy

Hyperconverged infrastructure (HCI) provider Nutanix updated its paperwork with the United States Securities and Exchange Commission (SEC) on Monday, signaling the company may once more be moving forward with plans for an initial public offering (IPO). According to the filing, Nutanix, a leader in the still relatively small pack of players in the startup HCI market, nearly doubled its revenue in the six-month period ending January 31. 

Hindustan Aeronautics to hit markets with an IPO by December-end | Latest News & Updates at Daily News & Analysis

After completing the Rs 4,300 crore buy back of shares, Hindustan Aeronautics Ltd (HAL) plans to hit the market with an initial public offering by 2016-end along with 10% government stake sale.

Buyback of shares has strengthened the balance sheet of state-owned HAL and the company is now in the preparing the draft red herring prospectus (DRHP) for the IPO.

“The DRHP is likely to be filed with Sebi by September and the IPO will be launched in the October-December quarter,” a senior government official told PTI.

The Cabinet in 2012 approved selling of 10% stake or 1.20 crore equity shares through an IPO of Navratna defence equipment maker HAL. The company provides maintenance and overhaul services to aircraft. 

Procedures for IPO of two companies in EGX to begin upon parliament’s approval of government programme: MP – Daily News Egypt

Minister of Public Sector Affairs Ashraf Al-Sharkawy told parliament members that he intends to start the procedures for an Initial Public Offering (IPO) of two companies in the Egyptian Stock Exchange (EGX) upon parliamentary approval of a government programme, Member of Parliament Mohammed Badawi Desouky said.

These two companies are the Cotton and Textile Industries Holding Company (CTIHC) and the Holding Company for Metallurgical Industries. 

Constellation to buy Prisoner wines, explore Canadian IPO

Constellation Brands announced a $285 million deal Wednesday to buy The Prisoner Wine Co., described as a “fast-growing, super luxury” winemaker out of California.

The company also said it is evaluating an initial public offering involving its Canadian wine business. Constellation, based in Victor, Ontario County, made the announcement in tandem with the release of its fourth-quarter and fiscal 2016 results, showing $6.55 billion in revenues for the year and adjusted earnings per share of $5.43, both up slightly over last year. 

Is the IPO Market Set to Rebound? When It Does, Here’s Why You Should Jump In – TheStreet

The IPO market in 2016 has struggled just as badly this year as last year. Only seven companies have debuted so far, the lowest amount since 2009. Companies have been scared off by a volatile stock market and by numerous weak performances from IPOs last year.

But there are indications that the IPO market is steadily recovering. And if that is the case, investors needs to be ready to be the first to jump on any companies which may break this IPO drought and start looking for investors. 


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