High-quality IPOs coming for end of the year
This is it...the last week for IPOs before it dries up for the holidays.
This a high-quality IPO week. Very few dogs here. The list of companies going public include a couple well-known names (Hilton, AMC Entertainment), a hot Chinese internet company (Autohome), and a company with new technology in the hot storage space (Nimble Storage).
Pricing tonight: Autohome (ATHM) and Valero Energy Partners (VLP).
Autohome is a Chinese online auto site seeking to raise 7.8 million shares at $14-$16. I know--a Chinese online auto site. Huh? There's demand: Initial price talk was $12-$14, it's now $14-$16.
Why? They are the number one auto website in China in terms of daily visitors and time spent per user. The advertising money comes from roughly 100 auto makers. (Yes, there are 100 automakers in China!). Dealers pay a subscription fee, which gives them stability in their revenues. Sales are $195 million this year; operating profit of $96 million, so they are profitable. Sales for the nine months ending in September grew 67 percent.
And Chinese IPOs, after a long period of dormancy, have suddenly become hot: Take 500.com (WBAI), a sports lottery business that went public last month, pricing 5.8 million shares at $13....now trading at $25.
Or Sungy Mobile (GOMO), which offers mobile internet products (app management, for example), pricing 5.4 million shares at $12, now trading over $15.
Here's what's interesting: one of their main competitors, Bitauto Holdings (BITA), which went public at the NYSE in February, is trading at 25 times 2014 earnings, according to analysts. Autohome is trading at 18 times forward earnings.
Valero Energy Partners is offering 15 million shares at $19-$21, a Master Limited Partnership (MLP) that is an oil pipeline/terminal operator affiliated with refiner Valero (VLO).
Pricing Wednesday: Hilton Worldwide (HLT), AMC Entertainment (AMC), and ARAMARK (ARMK).
Hilton Worldwide is offering 112.8 million shares at between $18 and $21. The biggest hotel operator, with 4,000 hotels and almost 700,000 hotel rooms. I wrote about this in my morning Trader Talk note.
AMC Entertainment, one of the world's largest movie screen chains (343 theaters with 4,937 screens), is offering 18.4 million shares at $18-$20. It is owned by the Wanda Group, a Chinese real estate company.
ARAMARK Holdings, one of the leading providers of food and uniform services to healthcare, education, sports centers, and prisons, is pricing 36.3 million shares at $20-$23.
Pricing Thursday: Cheniere Energy Partners (CQH) and Nimble Storage (NMBL).
Cheniere Energy Partners is offering 30 million shares at between $19 to $21, a limited partnership (LP), will own a 55.9 percent interest in Cheniere Partners, which owns liquid natural gas facilities.
Nimble Storage is pricing eight million shares at $16-$18, an enterprise storage business, which incorporates high-performance flash storage. It's a technology change because flash is a quicker, more reliable medium than traditional disk-based storage. This is a hot space, and we could see a nice move up.
—By CNBC's Bob Pisani