It'll be another busy few days for the IPO market this week, with no less than 13 issues making their stock exchange debuts. There won't be a monster IPO like last week's $2.4 billion flotation of Ally Financial, or the $650 million sale of hotel chain La Quinta Holdings.Rather, the slate over the next few days is filled with smaller issues.
Of course, there are the outliers -- namely this week's blockbuster, the $850 million travel services company Sabre stands to make, and the $360 million or so hoped for by Chinese Internet titan SINA (NASDAQ:SINA) for its social media brand Weibo.
Before we look at our three selections for the coming days, we have to issue our usual warning: IPO investing carries above-average risk, since initial stock prices can be far from the value the market eventually puts on the company's shares. This situation provides immense upside potential, but it also opens the possibility of losing a big chunk of an investment.
With that out of the way, let's get into it.
Anyone who's traveled at all over the past few decades has, one way or another, almost certainly utilized the services of this IT company. In its various corporate incarnations over the years, Sabre Holdings has been the dominant technology solutions provider in the travel business for many years. It also controls a host of travel-related assets, such as the popular Travelocity website. This isn't the first time it's gone public; it made its original market debut in 2000 and stayed on the bourse until being taken private by a pair of financial services companies -- TPG and Silver Lake Partners -- in a 2006 deal for around $5 billion.Those investors stand to gain handsomely if Sabre's IPO 2.0 is successful.
Sabre Holdings is to be listed on the Nasdaq and bear the ticker symbol SABR. Just over 44.7 million shares of stock will be sold at $18 to $20 apiece on Thursday. The big underwriting syndicate is headed by Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS), Bank of America Merrill Lynch, and Deutsche Bank Securities.
Sportsman's Warehouse Holdings
Want to spend your leisure time hunting, fishing, or zooming around on an ATV? If the answer is "yes," then this store chain is more than worthy of a visit. Claiming that it has "the largest outdoor specialty store base in the Western United States and Alaska," Sportsman's Warehouse these days boasts 49 stores in 18 states. It's done a good job improving its results, staying comfortably in the black while steadily growing total sales. There's a lot of the great outdoors in America, and many fun-seeking Americans looking to take advantage of that, so the company has a healthy market to profit from.
A total of 12.5 million shares of Sportsman's Warehouse Holdings are slated to hit the market on Thursday, at a price of $11 to $13 per share. The stock should be listed on the Nasdaq under the ticker symbol SPWH. The lead underwriters of the issue are Credit Suisse (NYSE:CS) and Goldman Sachs.
Chinese Internet stocks have been in the doldrums of late; Web conglomerate SINA hopes the flotation of its Weibo microblogging platform will change that. Often compared to Twitter (NYSE:TWTR), Weibo has a nine-figure strong army of users (129 million of the active monthly variety as of the end of 2013, compared with Twitter's 241 million), and like its U.S. counterpart has seen a pronounced uptick in revenues lately. Unfortunately, it's also aping Twitter in posting consistent bottom-line losses, although in contrast to that company it's managed to narrow them over the past few years.
Weibo will make its market debut on Thursday, with the sale of 20 million American depositary shares priced at $17 to $19 per ADS. These are to be listed on the Nasdaq under the ticker symbol WB. Goldman Sachs and Credit Suisse are heading the underwriting syndicate.