The U.S. IPO market posted solid numbers in 2012, with 145 companies raising $47 billion in new issues, on par with the annual average since 2000, but the figures obscure a wildly uneven year. According to Dealogic, all but one of the year’s top 20 IPO s took place in two periods, one that ran from March 14 to May 17, the other from September 19 to October 25.
The burst of activity in the spring culminated with the $16 billion IPO of Facebook Inc., one of the most widely anticipated new issues ever to debut on a U.S. exchange [Big Deals, July 2012]. Facebook performed poorly in the public markets, as did online gaming company Zynga Inc. [Big Deals, March 2012] and online coupon company GroupOn Inc. [Big Deals, January 2012] in the months after their 2011 IPOs, which helped cool demand not only for technology companies but for those in other industries as well.
The fall flurry was led by Banco Santander S.A.’s sale of a 25 percent stake in its Mexican subsidiary, a $4.1 billion issue. We list the advisers on that deal and three other fall IPOs in this month’s column. All underwriters are based in New York unless otherwise noted.
Grupo Financiero Santander Mexico S.A.B. de C.V. went public on the New York Stock Exchange and on the Mexican Stock Exchange on September 26 in an IPO that raised $4.1 billion for Madrid-based parent Banco Santander S.A., which retains a 75 percent stake in Santander Mexico, the fourth-largest bank in Mexico. Banco Santander took its Brazilian unit public in a similar deal in 2009.
The American depository receipts accounted for 81 percent of the offering and were priced at $12.18 and rose to $12.91 in opening day trading on the NYSE. The stock closed at $16.31 on January 3, giving the company a market capitalization of $11 billion. Banco Santander floated 81 percent of the issue in New York and the rest on the Bolsa in Mexico City.
For issuer Grupo Financiero Santander Mexico S.A.B. de C.V. (Mexico City)
Davis Polk & Wardwell: Nicholas Kronfeld.
For lead underwriters UBS Investment Bank, Santander Investment securities inc., Deutsche Bank Securities Inc., and Bank of America Merrill Lynch
Shearman & Sterling: Stuart Fleischmann.
Linn Energy LLC took LinnCo LLC public on October 12 in a $1.27 billion IPO. Each share of LinnCo represents a unit in Linn Energy, but while the parent is a partnership, the latter is a corporation, a structure that the oil and gas company hopes will be more appealing to some institutional shareholders. The shares were priced at $36.50 and rose to $38.26 in opening day trading on Nasdaq. The stock closed at $37.09 on January 3, giving LinnCo a market capitalization of $1.3 billion.
For issuer LinnCo LLC (Houston)
Baker Botts: Kelly Rose.
For lead underwriters Barclays Capital Inc., Citigroup Inc., RBC Capital Markets LLC, and Wells Fargo Securities LLC
Latham & Watkins: Brett Braden, J. Michael Chambers, and C. Timothy Fenn.
Apollo Global Management LLC took Realogy Holdings Corp. public on October 11 in a $1.24 billion IPO on the NYSE. The shares were priced at $27 each and closed at $34.20 in their debut. Realogy stock closed at $41.94 on January 3, giving the company a value of $5.8 billion. Apollo purchased Realogy, the parent company of Century 21 Real Estate LLC, ERA Franchise Systems LLC, Coldwell Banker Real Estate Corporation, and Sotheby’s International Realty, for $6.8 billion in 2007, just after the U.S. housing market had peaked.
For issuer Realogy Holdings Corp. (Parsippany, New Jersey)
Skadden, Arps, Slate, Meagher & Flom: Stacy Kanter.
For underwriters Goldman, Sachs & Co., J.P. Morgan Securities LLC, Barclays Capital Inc., and Credit Suisse Securities (USA) LLC
Simpson Thacher & Bartlett: Arthur Robinson and Marisa Stavenas.
Workday Inc. raised $733 million in an October 12 IPO on NYSE. Shares in the enterprise software company were priced at $28 each and zoomed to $48.69 in opening-day trading. The stock closed at $52.30 on January 3, giving Workday a value of $8.7 billion.
For issuer Workday Inc. (Pleasanton, California)
Fenwick & West: Gordon Davidson and Jeffrey Vetter.
For underwriters Morgan Stanley and Goldman, Sachs & Co.
Gunderson Dettmer Stough Villeneuve Franklin & Hachigian: Robert Gunderson Jr., Brooks Stough, and David Van Horne Jr.