The IPO thaw is finally here. Maybe. It's been two months since the market bottomed, but it's been nearly four months since any significant companies went public.
This morning SecureWorks, Dell's security spinoff, said its long-awaited IPO was expected to price 9 million shares between $15.50 and $17.50, valuing the company at up to $1.42 billion.
Exchange operator BATS Global Markets (BATS) is scheduled to price its long-awaited IPO next Thursday night for trading Friday, and there's a lot at stake.
First, BATS will be listing and trading on its own exchange, after an historic 2012 technology glitch that forced them to abandon their IPO. Second, the entire IPO community will be watching the deal as an indication of the health of the IPO market.
BATS has to execute the IPO and price it so investors make money. If the deal does well and the markets hold up, two other IPOs are waiting the following week: casino REIT MGM Growth Properties (MGP), and American Renal (ARA), which runs dialysis facilities.
These four companies are all in different spaces, but they do have some similar characteristics. They have significant market share in their space and growth potential, and they are profitable or have a clear path to profitability.
Likely also coming soon will be US Foods Holdings (USFD) and SoulCycle (SLCY)
There's other signs that the IPO market is coming out of its hibernation. In the last few weeks, more than two dozen IPO candidates have updated their financials. That's a good sign. It means they are still in the game.
More importantly, the majority have been non-biotech companies, including big names like McGraw-Hill Education (MHED), US Foods Holdings (USFD) and United Guaranty (UGCO), each of which could raise $500 million or more.