The IPO market appears to have opened up for private equity backed new issues.
So far in 2013, there have been 270 global IPOs, totaling $53.9 billion. This compares to last year when 346 IPOs raised $52.8 billion as of June 14, according to Thomson Reuters.
About one-third of this year’s 270 IPOs come from the Americas. The U.S. contributed 72 new issues while 5 came from Brazil, Thomson Reuters says.
The biggest global IPO this year was Brazil’s BB Seguridade Participacoes SA. The insurance unit of Banco do Brasil raised $5.1 billion in April. In second place is Zoetis. Pfizer sold Zoetis, its animal health business, in an initial public offering in February.
Several PE firms, like TPG and Blackstone, have seen success for their companies in the IPO market. However, the number of IPOs from financial sponsors has fallen this year. There have been 18 private equity-backed IPOs as of June 14, totaling $7.6 billion. This compares to last year when there were 25 new issues as of June 14, raising $5.8 billion, Thomson Reuters says.
Here are the top 5 PE-backed IPOs, according to Thomson Reuters. (TR is the publisher of peHUB.)
- In fifth place is Pinnacle Foods.The company went public in March, raising $580 million. Pinnacle, whose brands include Duncan Hines cake mixes and Lender’s frozen bagels, sold 29 million shares at $20 each. Blackstone did not sell stock in the offering, according to SEC filings. The PE firm owned 95% of Pinnacle before it went public and saw its stake fall to about 68% after the IPO.
- Ranking fourth is Taylor Morisson Home Corp. which launched its IPO in April. Investors including TPG and Oaktree Capital Management bought the home builder in July 2011 for $1.2 billion. peHUB reported in May that TPG, including unrealized gains, has made more than 3x its money.
- Coming in third is SeaWorld Entertainment, the theme park operator. SeaWorld went public in April and provided a partial exit for Blackstone. In late 2009, the PE firm acquired SeaWorld from Anheuser-Busch for about $2.3 billion. The deal included a $1 billion cash injection from Blackstone and $1.4 billion in long-term debt, according to the regulatory filing. Between realized and unrealized gains, Blackstone more than doubled its investment in SeaWorld. See our story here.
- Placing second is Coty, the perfume and beauty products seller, which didn’t have a smooth ride in the IPO market. The company raised nearly $1 billion and saw its shares fall below their $17.50 IPO price yesterday. Shares today still look depressed and traded at $17.46 Friday. Coty is backed by Rhone Capital and Berkshire Partners, which each own small stakes. The firms sold about $119 million worth of shares in the IPO, Reuters reported. After the deal, Berkshire and Rhone will each have 6.4% of Coty, according to SEC filings.
- The year’s biggest PE-backed IPO is Quintiles. In May, the drug researcher went public and raised about $1.09 billion, Thomson Reuters says. Quintiles stock has consistently performed well and reached a high of $46.50 on May 16. The stock is currently trading at $42.97. Quintiles is backed by TPG and Bain Capital. See how well TPG did on the deal here.
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