The IPO calendar for 2013 is starting to get more crowded as spring approaches.
The aftermarket for initial offerings has been especially strong as investors are rewarded for investing in new ventures and private equity cash outs.
Analysts expect the pace of offerings to continue to increase as the demand has been very strong and the equity markets are at or approaching new all-time highs.
There will be two deals pricing in the next couple weeks and several larger deals are expected by the end of the month, including the widely anticipated Sea World offering.
In the last few days there have been two deals added to the upcoming IPO calendar with specific pricing dates coming in the next couple weeks.
IPO Calendar 2013: Two Intriguing Deals to Watch
On Wednesday, March 13 we will see the debut of a company that makes software applications to make the nation's electrical grid work more efficiently.
Silver Spring Networks (NYSE: SSNI) has developed a two-way communication network that allows utility back offices to communicate directly with devices plugged into the electrical grid. The software allows utilities to automate many processes including pricing programs, grid management and customer support. Silver Spring markets the programs to utilities around the world and has 31% of domestic electric companies here in the United States using its products. The company currently has an order backlog of more than $750 million.
The company is in the sweet spot of infrastructure spending for the next decade. The electrical grid in the United States and much of the rest of the world is outdated. The company should benefit from spending that allows utilities to monitor, protect and repair the grid faster and more efficiently. In addition, its programs allow utilities to manage the distribution of power and monitor customer usage. In addition, using cloud computing and cellular technology to automate the monitoring and billing process should provide major cost savings to the company's electric utility customers.
The company expects to price 3.7 million shares between $16 and $18 a share. At the mid-point of the range the deal will raise $63 million for general corporate purposes including working capital and future acquisitions. Goldman Sachs and Credit Suisse are co-managers of the deal.
On Wednesday, March 20, Model N (NYSE: MODN), a provider of revenue management to the life science and technology industries, will make its debut. According to the prospectus filed with the U.S. Securities and Exchange Commission (SEC), Model N's solutions enable customers to maximize revenue and reduce revenue compliance risk by transforming their revenue lifecycle from a series of tactical, disjointed operations into a strategic end-to-end process. The company believes that it is a pioneer in the field of revenue management for these industries.
The company markets its products as either installed on-premise solutions for a per-user license or a subscription-based cloud offering. Revenue is derived from license fees as well as maintenance and application support.
Model N targets larger and mid-size companies with a direct sales force and marketing team. It has relationships with systems integrators and consultants that promote Model N products and solutions to their customer base.
Model N believes that its specialized expertise in the technology and life sciences industries gives it a strong competitive advantage over potential competitors. So does its large installed customer base.
Its life science customers include industry leaders such as Abbot Labs, Amgen, Boston Scientific, Bristol Myers Squibb, Johnson & Johnson and Merck & Co. Technology customers include such tech giants as Dell Computer, Nokia, VMware and STMicroelectronics. The positive results achieved by these leaders should help build and maintain Model N's reputation as a market leader in revenue management solutions in niche markets.
The offering is expected to be priced in a range of $12.40 to $14.50 a share with $87 million being raised at the mid-point of the pricing range. The proceeds will be used for general corporate purposes and a portion of the money may be used for acquisitions and investments that complement their current offerings. JPMorgan and Deutsche Bank Securities will co-manage the offering.
Silver Spring Networks was part of our IPO outlook report for 2013. Check out the other seven companies we put on our IPO calendar.