Hydra Industries Acquisition, a blank check company formed by A. Lorne Weil and sponsored by Macquarie, filed and set terms for an initial public offering on Tuesday. The New York, NY-based company plans to raise up to $100 million by offering 10 million units at $10 per unit. At that price, the company would command a fully diluted market value of $125 million.
A. Lorne Weil previously served as Chairman and CEO of Scientific Games Corporation (NASDAQ: SMGS) for about 20 years. He also served as sponsor and Chairman of Andina Acquisition Corp, a blank check company that raised $40 million in a 2012 IPO and later acquired Tecnoglass (NASDAQ: TGLS).
Another blank check company sponsored by Macquarie, Terrapin 3 Acquisition (TRTLU), raised $185 million in its July IPO.
Hydra was formed in 2014 and plans to list on the NASDAQ under the symbol HDRAU. UBS Investment Bank is the sole bookrunner on the deal. No pricing date was disclosed.
Southeastern Grocers, which operates about 825 grocery stores in the Southeast under the Winn-Dixie and BI-LO brands, withdrew its plans for an initial public offering on Tuesday. The company originally filed for a $500 million IPO in September 2013.
Southeastern Grocers serves key metropolitan areas in Florida, Georgia, Alabama, Louisiana, Mississippi, South Carolina, North Carolina and Tennessee and was the sixth largest conventional supermarket operator in the US based on number of stores at the time of its filing (685). The company's private equity backer, Lone Star Funds (100% stake), had begun a major middle-market grocery acquisition spree when it added Winn-Dixie to its BI-LO portfolio in 2012 for $560 million. In February 2014, it overcame a challenge from the FTC and was allowed to purchase 154 stores from Belgium-based Delhaize for $265 million.
Another LBO'd grocer, Smart and Final Stores (SFS; controlled by early May IPO Ares Management (ARES)), filed in June for an IPO that could raise $300 million. Initial public offerings from leveraged buyouts have generally underperformed in 2014.
The Jacksonville, FL-based company was founded in 1961 and booked $10.1 billion in sales for the 12 months ended September 30, 2013. It had planned to list on the NASDAQ under the symbol SEG. Citi, Credit Suisse, Deutsche Bank, William Blair and Wells Fargo Securities were set to be the joint bookrunners on the deal.
Medley Management, an alternative asset manager with $3.3 billion of AUM, filed on Monday with the SEC to raise up to $150 million in an initial public offering.
The company launched Medley Capital (NYSE: MCC), its first permanent capital vehicle, in 2011 as a business development company. It also manages Sierra Income Corporation, which is offered on a continuous basis to investors over 110 broker dealers representing 27,800 RIAs. At the end of June, it has $3.3 billion of AUM, up from $2.0 billion one year ago.
The New York, NY-based company, which was founded in 2006 and booked $60 million in total revenue for the 12 months ended June 30, 2014, plans to list on the NYSE under the symbol MDLY. Medley Management initially filed confidentially on June 23, 2014. Goldman Sachs and Credit Suisse are the joint bookrunners on the deal. No pricing terms were disclosed.
8/18/14 Analyst IPO Blog
Only two IPOs are expected to begin trading this week, both holdovers from last week that had originally been on the calendar for the week of August 4. The IPO market has begun its annual late-August hiatus, as last week's two deals trade just 1% from the IPO price and none are expected for next week.
Zosano Pharma (ZSAN) could be the year's 52nd biotech IPO if it prices this week. Given that the company delayed its IPO for about two weeks and 41% of biotechs have priced below the range (18% priced above), Zosano could see valuation pushback. Early-stage biotechs like Zosano come under increased pressure when investors lose their appetite for companies that will remain unprofitable and require additional funding in the near future. However, Zosano could attract attention as a former Johnson & Johnson division backed by New Enterprise Associates.
GWG Holdings (GWGH), which has not selected a pricing date, recently downsized its IPO size by 37% and replaced its underwriter. Finance IPOs have generally underperformed this year. Year-to-date, 21 companies in the financial services sector have gone public, averaging a 1% total return (2% on the first day and -1% post-IPO), compared to 3.6% for the Renaissance Capital IPO ETF (symbol: IPO).
|Expected IPOs (week of August 11, 2014)
||Proposed Trading Date
||Deal Size ($mm)
|Zosano Pharma (ZSAN)
||Biotech: transdermal osteoporosis treatment
|Wk of 08/18
|GWG Holdings (GWGH)
||Life insurance investment firm
||Wk of 08/18
||MLV & Co.
The following IPOs are expected to price this week
), which holds a portfolio of life insurance policies worth over $250 million, plans to raise $13 million by offering 1.0 million shares at a price range of $11.50 to $13.50. At the midpoint of the proposed range, GWG Holdings would command a market value of $76 million. GWG Holdings, which was founded in 2006, booked $30 million in sales over the last 12 months. The Minneapolis, MN-based company plans to list on the NASDAQ under the symbol GWGH
. Newport Coast Securities is the lead bookrunner on the deal.
), a biotech developing a transdermal delivery system to treat osteoporosis, plans to raise $70 million by offering 6.4 million shares at a price range of $10 to $12. At the midpoint of the proposed range, it would command a market value of $139 million. Zosano Pharma, which was founded in 2007, booked $3 million in collaboration revenue over the last 12 months. The Fremont, CA-based company plans to list on the NASDAQ under the symbol ZSAN
. Wedbush PacGrow, Ladenburg Thalmann and Roth Capital are the joint bookrunners on the deal.
Renaissance Capital will have Pre-IPO Research
available on each of these upcoming IPOs prior to its pricing.
Last week, there were 2 IPO pricings
. Otonomy (OTIC
), a late-stage biotech developing sustained-exposure treatments for ear diseases, was the week's winner, ending up 1% from its IPO price.
Keywords: US IPO Calendar, GWGH