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One of the most anticipated IPOs of 2013 is coming to market next week.
It's part of the handful of deals debuting next week, many of which include investment banks like Goldman Sachs, JPMorgan and BofA Merrill Lynch in lead roles.
The following few deals are expected to be high-demand offerings with solid aftermarket potential.
First, let's look at a couple of the small deals hitting the market next week. These are in addition to the three we profiled earlier in the week.
Three More for Your IPO Calendar
On Thursday, April 18, we will see an IPO from Taminco Corp. (NYSE: TAM), which produces alkylamines and alkylamine derivatives. These are used in the manufacturing of products for the agriculture, water treatment, personal & home care, animal nutrition and oil and gas end-markets. They help neutralize acidity, and remove contaminants from a wide range of products.
Taminco is the dominant player in a niche market with few competitors, giving it substantial pricing power, according to the prospectus. Most raw material price changes are easily passed on to the end consumer.
The company is offering 15.8 million shares between $18 and $20. At that midpoint of the range the offering will raise $281 million of net proceeds which will be used to pay off outstanding debt. The offering has a large management group with Citigroup, Goldman Sachs, Credit Suisse, JPMorgan, Deutsche Bank Securities, Jefferies, Morgan Stanley and UBS Investment Bank acting as joint managers.
On Friday, Black Hawk Network Holdings (Nasdaq: HAWK), a leading prepaid payment network, will sell 10 million shares between $20 and $22. The company is one of the leading providers of prepaid gift cards in the world based on the amount of funds pre-loaded on the cards.
It offers cards from leading vendors such as Starbucks, Amazon, iTunes, and many other leading stores and online shopping sites. IT offers prepaid cards from payment vendors such as American Express, Mastercard, and Vise, and general purpose reloadable cards such as GreenDot as well as its own PayPower GPR card.
The cards are offered through a network of high-traffic locations such as grocery stores, convenience and specialty stores as well as online retailers.
The company is currently owned by Safeway Inc. (NYSE: SWY) and the grocer will hold a large stake and voting control of the company after the offering. All offering proceeds will go to the selling stockholders, including Safeway.
Goldman, Sachs, BofA Merrill Lynch, Citigroup and Deutsche Bank Securities are the joint managers.
Also on Friday we will see one of the most anticipated offerings of the year: SeaWorld Entertainment (NYSE: SEAS).
Sea World will offer 20 million shares between $24 and $27 a share. The company is one of the leading theme park operators in the United States with 11 locations.
The company was acquired by private equity firm The Blackstone Group L.P. (NYSE: BX) in 2009 when Anheuser-Busch InBev NV (NYSE ADR: BUD) decided to exit the theme park industry and sell its portfolio of parks. Since being acquired and operated by Blackstone as a standalone company, SeaWorld revenue has grown from $1.1 billion to over $1.4 billion in 2012.
The bottom line has gone from a loss of $45 million, to last year's profit of $77 million. The pro forma earnings per share (EPS) would have been $.83. The company also plans to pay dividends at an initial rate of $.20 per quarter for an annualized yield of over 3%.
At the midpoint of the range the offering will raise $231 million, which will be used to pay off select debt issues and make payments of $47 million to Blackstone in connection with the termination of the advisory agreement from 2009.
Five of the parks are among the top 20 in the United States and SeaWorld operates 7 of the 50 highest rollercoasters. The parks have a total of 600 attractions including 93 animal habitats, 116 shows and 187 rides.
SeaWorld believes it has one of the world's largest zoological collections with approximately 67,000 animals. The collection includes approximately 7,000 marine and terrestrial animals and about 60,000 fish. It has one of the largest populations of killer whales under human care with 29. The breeding programs have produced 30 killer whales, 152 dolphins and 115 sea turtles.
The joint managers of the group will be Goldman Sachs, JPMorgan, Citigroup, BofA Merrill Lynch, Barclays and Wells Fargo Securities.
[Editor's Note: Are you interested in learning more about the best profit opportunities in IPOs and other Wall Street deals? Money Morning Capital Wave Strategist Shah Gilani – former hedge fund manager – has followed the IPO market for years to find the best times to buy and sell to maximize gains. He detailed his strategy for us in this report – take a look.]
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