Just a few months ago, it would have been much easier for Mitel to stand out.
Instead, it's making its debut in the most crowded IPO marketplace in some time. At last count, up to eight companies plan to go public in the United States this week, with at least seven set to begin trading tomorrow.
According to Renaissance Capital, a research firm that tracks IPOs, it would be the first seven-IPO day in three years. And it's not a blip: the firm's analysts say there are 12 more companies that have disclosed terms for their upcoming IPOs, "suggesting that the recent uptick may be sustainable." Last week saw the biggest number of filings - 11 - since September, 2007, Renaissance said.
The eight companies planning IPOs this week will have a combined market cap of around $3.55-billion (U.S.) and raise $1.2-billion, estimates analyst Francis Gaskins, who runs a website called IPODesktop. Mitel is the largest, with a potential $865-million market cap, while the other seven range from $150-million to $600-million.
The offerings are heavy in tech and related sectors:
Texas-based Global Geophysical Services Inc. provides seismic data to the oil and gas industry, booking $312.8-million in 2009 revenue but just a $445,000 profit. It hopes to raise about $100-million from the offering, while at the same time raising twice as much from a debt sale. The company is offering seven million shares - but the CEO and chief financial officer are selling 4.5 million of their own.
Alimera Sciences Inc. of Georgia is a pharmaceutical company with a product designed to treat a diabetes-related eye disease; the company hopes to file a new drug application in the U.S. in the second quarter. Typical of early-stage drug companies, Alimera has no revenue, and it posted a $44.2-million net loss in 2009. The company expects to raise just under $90-million; all the stock in the offering is being sold by the company.
Codexis Inc. is a California company that produces biocatalysts to aid chemical processes for the pharmaceutical and biofuel industries. It lost $20.3-million on $82.9-million in revenue in 2009. All the shares will be sold by the company, which hopes for about $75-million to be used for working capital purposes.
DynaVox Inc. , based in Pittsburgh, is a maker of speech-recognition software and devices for the disabled. It hopes to raise at least $150-million from the offering, most of which will go to existing shareholders. It posted net income of $8.8-million on sales of $91.2-million in its fiscal year ended in July.
Other IPOs include retail REIT Excel Trust Inc. , lender THL Credit Inc. , and software company SPS Commerce Inc. .