London stock markets experienced a second quarter surge in the number of IPOs with a 129% increase on the same period last year according to the latest PricewaterhouseCoopers quarterly IPO Watch Europe survey. London was the largest market in terms of offering value and volume in the quarter, with 102 IPOs raising EUR14,808 million compared with 108 IPOs raising EUR6,454 million in 2006.
American Capital Strategies has exited from portfolio company EAG Acquisition LLC and its operating subsidiary Evans Analytical Group LLC, via an IPO on the London Stock Exchange. American Capital recognized $158 million on the exit, generating an 11x equity return.
Concho Resources, a Texan oil and gas company, is to list on the New York Stock Exchange with an IPO of 21.2 million shares with a price range of $14 to $16 per share. The business is backed by Yorktown Energy Partners, a New York-headquartered private equity investor specializing in energy companies.
Dolan Media, a Minnesota-based provider of professional services to the legal, financial and real estate sectors, is to raise around $152.3 million from its IPO of 10.5 million shares with an indicative price range of $13.50 to $15.50 per share. It will have a market cap of around $364 million at the mid-point of this range. ABS Capital Partners and Cherry Tree Investments have backed the firm since 1997, ABRY Partners got involved in 2004.
Genpact Ltd. (f.k.a. Gecis Global), a global business process outsourcing company, has set its proposed IPO terms to about 35.29 million common shares at between $16 and $18 per share. It would be valued at over $3.7 billion, if it were to price at the high end of its range. Genpact plans to trade on the NYSE under ticker symbol G, with Morgan Stanley, Citi and JPMorgan serving as co-lead underwriters. General Atlantic and Oak Hill Capital Partners acquired a 62.63% stake in Gepact from General Electric in 2005, for approximately $500 million (including $375 million in equity).
MercadoLibre Inc., a Buenos Aires, Argentina-based online trading platform for Latin America, has set its proposed IPO terms to around 16.07 million common shares being offered at between $16 and $18 per share. If the company prices at the high end of its range. MercadoLibre would be valued at around $789 million. It plans to trade on the Nasdaq under ticker symbol MELI, with Merrill Lynch and JPMorgan serving as co-lead underwriters. MercadoLibre raised $54.3 million over two rounds of VC funding in 1999 and 2000, from firms such as JPMorgan Partners, Flatiron Partners, Hicks Muse Tate & Furst, Goldman Sachs, Capital Riesgo Internet and GE Capital. Mercadolibre also lists eBay as a significant shareholder, deriving from a strategic partnership signed in 2001.
Monotype Imaging Holdings, a Woburn, Massachusetts-based provider of text imaging software, is to offer 11 million shares as part of its IPO with an indicative price range of $13 to $15 per share. TA Associates holds an 81.2% pre-IPO ownership position, with D.B. Zwirn holding a 3.9% stake.
ShoreTel, a Sunnyvale, California-based provider of IP telecom systems for enterprises, has completed its IPO on NASDAQ. Lehman Brothers and JP Morgan Securities acted as underwriters on the float, which raised $86.3 million following the exercise of the over-allotment option to purchase an additional 1,185,000 shares of the company’s common stock. It has raised around $107 million in VC funding between 1997 and 2004, from firms like Crosspoint Venture Partners (28.4% pre-IPO stake), Foundation Capital (20.7%), Lehman Brothers Venture Partners (23%), JPMorgan Capital (5.4%), Focus Ventures, Globespan Capital Partners, Matrix Partners and Norwest Venture Partners.
Sucampo Pharmaceuticals Inc., a Bethesda, Md.-based drug developer, today set the terms of its IPO of 3.75 million Class A common shares at an estimated price of $14 to $16 per share. The company plans to list on the Nasdaq under the symbol SCMP. Cowen & Co., CIBC World Markets and Leerink Swann & Co. are serving as underwriters. The company raised $25 million in venture funding from such firm as Diamond Capital, Fujisawa Research Institute of America, Intel Capital and Mizuho Capital Co.
Validus, a Bermuda-based provider of reinsurance, has filed for an IPO which will see the company sell 15.66 million shares with an indicative price range of $24 to $26 per share. It is backed by Aquiline Capital Partners, Goldman, Sachs & Co. Goldman, New Mountain Capital and Vestar Capital Partners.