Biggest Post-Facebook IPO Wave Is Set For This Week
The biggest wave of IPOs since Facebook (NASDAQ: FB) went public is set to hit the U.S. markets this week.
The reception to IPOs slowed in the second quarter in the wake of Facebook's lackluster market debut. New issues also were down, however, as companies delayed their moves to the public markets amid a declining stock market. IPOs issued in Q2 rose an average of 8.8% as of June 22, compared to a 23.2% average for IPOs issued in Q1, according to Ernst & Young.
It's not all bad, though. Average post-IPO return ending in June for Q2 IPOs still outperformed the overall market by about 14.8%, according to E&Y data.
Among the most anticipated offerings in Silicon Valley is network security-software company Palo Alto Networks, the maker of what it calls the “next-generation firewall”. The company, founded in 2005, plans to price 6.2 million shares in a range of $34 to $37. The IPO is expected to value the company at more than $2 billion. The company's proposed ticker is PANW.
Kayak Software is also on the docket. The Norwalk, Conn.-based online travel service company is expected to price 3.5 million shares at $22 to $25. It was founded in 2004 by the co-founders of Expedia (NASDAQ: EXPE), Travelocity and Orbitz (NYSE: OWW). The company is expected to trade under the Nasdaq ticker KYAK.
Scottsdale, Ariz.-based Fender Musical Instruments is a well-known name that is planning to trade starting this week. The maker of the Fender Stratocaster guitar and other stringed musical instruments and equipment is expected to price 10.7 million shares at $13 to $15 each. The predecessor of the modern company was founded by Leo Fender back in 1946. The stock is expected to trade under the ticker FNDR.
Five Below is going public as well. It's a Philadelphia-based value retail chain that sells mainly to teens and preteens. The company was founded in 2002. It plans to offer 9.6 million shares at $12 to $14 each, and is expected to have a small float of about 54 million shares following its offering. The proposed ticker is FIVE.
Lastly is Durata Therapeutics, a Morristown, N.J.-based pharmaceutical company hat has yet to receive FDA approval for any of its drugs. Its lead product candidate is dalbavancin for treatment of bacterial skin infections. Durata is now enrolling patients in two Phase III trials. It is expected to offer 6.3 million shares in the $11 to $13 range. Durata is expected to trade under the ticker DRTX.
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