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IPO Market Reboots after Hurricane Sandy

Posts by Ian Wyatt

With Hurricane Sandy mercifully behind us, Wall Street reopened today. The IPO market isn’t far behind.

According to the IPO research site Renaissance Capital, three initial public offerings are scheduled to price this week despite the abridged three-day schedule. Here’s what we know about the three companies set to debut:

  • Delek Logistics: This developer of crude oil in the southeastern U.S. plans to raise $160 million at $19 to $21 per share in its IPO. The company is a limited partnership founded just this year. Delek plans to list on New York Stock Exchange under the symbol DLK.
  • Restoration Hardware: People who have ordered a dining room table or a high-end leather sofa lately may be familiar with this luxury home furnishings retailer. The company boasts 83 stores in the U.S. and Canada, plus a large online presence. It plans to raise $119 million at between $22 and $24 a share in its IPO. The California-based company booked $749 million in sales over the past year.
  • Southcross Energy Partners: A natural gas gathering and processing company based in the southern U.S. (hence the name), Southcross will price in the $19-$21 range in the hopes of raising $180 million in its IPO. The company is just three years old, but did over $500 million in sales over the last 12 months. The stock will list on the NYSE under the symbol SXE.

With this being the last day of the month (Happy Halloween!), we can go ahead and close the book on October. It was a very good month for the IPO market.

Nineteen companies went public – 17 more than the paltry two new offerings last October. It’s also the most October IPOs since 2007, and the second-most productive month for the IPO market this year (there were 20 pricings in March).

September and October are typically two of the slower IPO months on the calendar. November and December are boom months, as companies feel more comfortable going public during the holiday shopping season.

The looming fiscal cliff could discourage a few companies from going public this holiday season. But the uncertainty surrounding the election hasn’t slowed the IPO market a bit, so we could be on track for the most productive year for IPOs since the recession.