A few deals we have been following began active marketing this month but we haven’t had any pricings yet. We recently sent out a review of SciQuest and also posted it on the blog. SouFun is another one we are working on. SouFun is a real estate portal in China which puts them in the company of recent deals like RealPage (portal for rental properties in the US) and MakeMyTrip Limited (portal for travel arrangements in India.)
The overall IPO market is getting fairly busy, but so far the majority of the deals marketing now are in areas we don’t cover like restaurants, REITs, funds, and insurance. We expect several new deals in our spaces to start marketing in the next two weeks.
It’s been a very good two weeks for the IPO Candy Ecosystem with the average change being +5%. Some names we folllow closely, like Higher One, Qlik, Motricity and Solar Winds, were up close to 20% in the past two weeks.
On the downside, SMART Technologies continues to suffer (down 17% in the week) and we saw some profit taking in strong performers like LogMeIn (down 5%) and Avago Technologies (down 9%).
Refer to the performance page for all the details.
Some names we added to the pipeline for review and potential coverage are:
- FXCM, a foreign exchange services company. It could fit into our cloud-based financial services thesis, but we’ll see.
- Bruker Energy & Supercon Technologies Inc. is an energy technology focused company applying some advanced techniques to develop new materials and devices.
- ChinaCache could be roughly described as an “Akamai of China” which means it could do quite well. We’ve added to the pipeline and will certainly be publishing a preview on that one.
We already mentioned SouFun, which has been added. We know GM is sitting out there, filed and ready to go, but we are not sure if we have the stomach to analyse such a meat and potatoes company. Doesn’t sound very sweet.
Coverage and the Calendar
The banks all came out on Envestnet and we have provided a snapshot of their coverage and price targets. It’s an interesting name but not one we have found enticing enough to fully cover; however, we may come back to it. RBC gets the Sour Ball Award for the worst initiation summary of the bunch.
Barclays – Neutral, $11: “[the firm has made significant inroads at top wealth management firms and driven strong organic growth even as peer firms struggled with poor performance and outflows. Envestnet has a wide universe of addressable advisers to continue its solid growth.]”
UBS – Buy, $14: “[a pure play on the growth in the independent financial adviser space, one of the fastest growing areas in the financial services industry. Retail investors are increasingly seeking financial advice and advisers are breaking away from large firms to become independent.]”
RBC – Buy, $12: “[company should benefit from the growth in independent advisers and in U.S. financial assets. However, growing concern over the sustainability of the economic recovery and the potential for another recession will likely weigh on the shares near term. They believe the company has the potential to generate significant revenue and adjusted EPS growth over the next two years as strong growth in assets from new client wins as well as recent large platform conversions begin to materialize.]”
Stifel – Buy, $15: “[company has a unique positioning as a pure-play on growth in demand for personal financial advisers, its scalable operating model, the visibility associated with its recurring revenue base and a strong pipeline of near-term opportunities.]”
The banks will be actively covering IntraLinks, NXP Semiconductors, MediaMind, MakeMyTrip and RealPage in the next few days. We will probably be putting out coverage summaries of these companies on Twitter (@IPO_Candy) or some new service but will notify everyone by email on the details. As usual, we will update the ecosystem with the average broker research price targets.
There will be some lockups coming off this month including MaxLinear, Calix, SS&C Technologies and Meru Networks.
[The IPO ecosystem overview, performance and pipeline tables can be found in the most recent Candygram located in the Candygram tab.]
[UPDATE: SouFun was priced last night at the high end of the range. We’ll try and get our IV done by Monday and out via email.]
[Disclosures: The author of this post is a private investor in Calix. This text published on September 16th via subscriber email.]