Assurant IPO leads busy week
$2 billion deal headlines flurry of deals
By Steve Gelsi, CBS.MarketWatch.com
Last Update: 10:35 AM ET Feb. 2, 2004
NEW YORK (CBS.MW) - The market for initial public offerings hits the gas pedal in 2004 and shifts into high gear this week as insurance giant Assurant headlines as many as 11 initial public offerings.
With the Dow and the Nasdaq in positive territory for the year and the rally from last year still holding, the IPO market continues to show signs of new vigor.
The IPO calendar this week is the busiest since Sept. 25, 2000, according to fund manager Renaissance Capital.
The IPOs feature starring rolls for two of Wall Street's marquee investment banks, Goldman Sachs and Morgan Stanley, but Bear Stearns, CS First Boston and others are weighing in as well.
The IPOs include candidates from the biotech, insurance, technology, and retailing sectors.
With so many deals on the calendar, it's possible that some of the IPOs may not make their public debut this week, but the fact that bankers are willing to at least schedule so many deals marks a sign of confidence in overall hunger for more stock.
The IPOs of today offer positive bottom lines and longer track records than the deals of the bubble, however.
Assurant weighs in with heft
Assurant, a profitable spinoff of Dutch and Belgian financial services firm Fortis, plans to offer 80 million shares at $20-$22 in a bid to raise about $2 billion as the largest IPO of the week.
Assurant (AIZ: news, chart, profile) offers consumer protection and homeowner's insurance; individual and group health insurance; group dental, disability and life insurance policies, and pre-funded funeral insurance. Key clients include State Farm, Mutual of Omaha and SCI.
As part of the spinoff, three directors appointed by Fortis will step down after Assurant goes public, leaving the parent with two seats on the board. Assurant plans to add independent directors.
Based on its price range, Assurant's value comes in at about nine times estimated 2004 earnings, an 18 percent discount the property and casualty insurance sector overall, according to fund manager Renaissance Capital.
"On a price-to-book basis, Assurant comes to market at a 40 percent discount to its peers," Renaissance Capital said in a note to clients. The company plans to pay a dividend of 7 cents per share later this year. Morgan Stanley is lead underwriter of the Assurant Inc. IPO.
TRW Automotive turning the key
TRW Automotive (TRW: news, chart, profile) plans to offer 24 million shares at $28-$30 each in a bid to raise about $724 million with underwriter Goldman Sachs.
The Livonia, Mich. car parts maker is controlled by New York-based Blackstone Group, following the closing of a March 2003 transaction with Northrop Grumman (NOC: news, chart, profile) valued at about $4.7 billion.
Todco IPO lines up
Todco (THE: news, chart, profile) plans to offer 12 million shares at $11-$13 each in a bid to raise about $156 million with underwriter Morgan Stanley Dean Witter.
The Houston-based provider of contract oil and gas drilling services is controlled by Transocean (RIG: news, chart, profile), a major offshore drilling specialist.
Todco differs from the privately held Marion, Ohio unit of the Overhead Door Corp. that operates under the same name.
Asset Acceptance Capital Corp. lines up
Asset Acceptance Capital (AACC: news, chart, profile) plans to offer 7 million shares at $13-$15 each in a bid to raise about $115 million with underwriter Bear Stearns.
The Warren, Mich. collection agency rang up $24 million in net income and $101 million in revenue in fiscal 2002.
GTX Inc. IPO takes shape
GTX Inc. (GTXI: news, chart, profile), a Memphis-based maker of drugs to fight prostate cancer, plans to offer 5.4 million shares at $13-$15 each in a bid to raise about $81 million with underwriter Goldman Sachs.
The company currently has two product candidates that are in human clinical trials.
Staktek Holdings IPO in queue
Staktek Holdings (STAK: news, chart, profile), a maker of memory stacking software for servers, work stations, computing platforms and networking equipment, plans to offer 10 million shares at $11-$13 each in a bid to raise about $130 million with underwriter Morgan Stanley.
Austin, Texas-based Staktek rang up net income of $9.5 million and revenue of $44 million in the period from Jan. 1, 2003 to Aug. 20, 2003, compared with $11.5 million in net income and revenue of $47 million in fiscal 2002.
Surgery center owner Symbion going public
Symbion (SMBI: news, chart, profile) plans to offer 7.2 million shares at $13-$15 each in a bid to raise about $108 million with underwriter CS First Boston.
The Nashville, Tenn. company ran up $12.3 million in net income and $145 million in revenue in fiscal 2002 as an operator of a network of surgery centers in 15 states.
Renovis targets biotech IPO
Renovis (RNVS: news, chart, profile) plans to offer 5.5 million shares at $13-$15 each in a bid to raise about $83 million with underwriter Goldman Sachs.
The South San Francisco, Calif. company is developing drugs aimed at treating neurological diseases.
AlphaSmart IPO offers education
AlphaSmart (ALSM: news, chart, profile) plans to offer 4.4 million shares at $8-$10 each in a bid to raise up to $44 million with underwriter Jefferies & Co.
The Los Gatos, Calif. company makes the AlphaSmart 3000 and Dana by AlphaSmart devices with keyboards and displays; with software and tools for the educational market.
Bakers Footwear IPO laces up
Bakers Footwear (BKRS: news, chart, profile) plans to offer 1.8 million shares at $7-$8 each in a bid to raise about $14 million with underwriter Ryan Beck.
The St. Louis-based retailer sells a variety of dress shoes, sandals, casual and sports footwear, sold at stores and on its Web site.
The Bancorp Bank
The Bancorp Bank (TBBK: news, chart, profile) plans to raise about $75 million in an IPO with underwriter Friedman Billings Ramsey |
