BrokerDealer.com IPO Spotlight: MobileIron Raises IPO target to $128M; Arista Ups Ante: Offering to Raise $241M

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silicon valley businessCourtesy of Silicon Valley Business Journal and Cromwell Schubarth

MobileIron, the mobile device management software company, on Thursday gave new hope to those worried that the IPO boom of the past year had run out of steam.

The Mountain View company, led by CEO Bob Tinker, said it plans to raise up to $128 million when it sells 11.11 million shares to the public alongside another allotment to insiders.

That’s above the $100 million placeholder fundraising target MobileIron announced at the beginning of April when it made its first public disclosure of its plans.

Raising price targets from that initial filing number, which is only disclosed for tax and fee purposes, isn’t a big deal in normal times. Nearly all of the IPOs during the recent streak did that. Some raised their targets more than once before their Wall Street debuts.

But that hadn’t been the case in the past two months, when investors started pushing back on companies that were all revenue growth and that had no profit in sight.

The chill on Wall Street prompted MobileIron, Arista Networks and Box all to postpone IPOs that had been expected before Memorial Day.

Now Arista and MobileIron have jumped back into line, both raising their top target numbers.

Santa Clara-based Arista on Monday said it expects to raise up to $241.5 million, above the $200 million top target that it projected in late March when it first officially disclosed its plans to go public. But it was also unusual among some startups in the fact that it has been profitable in the three years leading up to its impending stock offering.

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Is Your Startup Really Ready to Go Public? Uh Oh or IPO…Expert Insight

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entrepreneur-magazine-may-2014  Brokerdealer.com blog provides this excerpt courtesy of article contributed to Entrepreneur Magazine by Martin Zwilling, CEO Startup Professionals

With the recent apparent successes of several startups in taking their company public (initial public offering) and raising billions of dollars, I’m hearing a groundswell of enthusiasm from new entrepreneurs to follow in their footsteps to fund their companies and become billionaires overnight.

“If Facebook, Yelp and Twitter can do it, then why not me?”

Current IPO activity feedback seems to support their excitement. In the first quarter of 2014, the U.S. IPO market showed more activity than any other first quarter since 2000, with 64 companies raising $10.6 billion. That is more than double the number of IPOs in the first quarter of 2013. With 103 new filings during the quarter, the rest of 2014 is on track to keep up this record pace.

Related: The JOBS Act Provision That Could Change IPOs Forever

On the other side of the coin, new entrepreneurs seem to forget that 64 startups is a miniscule percentage of the companies seeking funding during the first quarter. According to the Small Business Administration, about 600,000 new businesses are started in the U.S. each year, and a large percentage are always looking for money.

What should an entrepreneur look for in his own startup as a reality check on his own aspirations to be a serious IPO candidate? Here is my collection of the key considerations, based on my own experience, scanning the literature and talking to experts in this domain: Continue reading →

Euronext Exchange to go Go Public via IPO

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BrokerDealer.com provides below news courtesy of AP Wire Services and Washington Post

Atlanta-based IntercontinentalExchange Group (ICE) said Tuesday it is launching an initial public offering (IPO) of ordinary shares in Euronext NV. The pan-European company operates exchanges in Paris, Amsterdam, Brussels and Lisbon.

For the full story, please visit the Washington Post

May 26 Post-IPO Quiet Period Expiry For Ares Management Opens A Cheap Window For A Solid Company; Underscoring Role of Underwriters

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BrokerDealer.com’s blog editor thanks Seeking Alpha for below extract; an independent analysis of alternative fund management firm Ares Management, which launched its initial public offering (IPO) on May 1. The analysis of this multi-strategy investment management platform was contributed by Don Dion, the owner and Chief Investment Officer of DRD Investments, LLC, based in Naples, FL. and Williamstown, MA., a family office focused on managing a long/short hedge fund, real estate assets and various other financial assets for the Dion family.

Summary

  • The Quiet period on underwriter research on ARES will come to an end on May 26th, 25 days after the firm’s May 1 IPO.
  • ARES has had a rocky start on the market post-IPO after pricing well below the expected range and continuing decline, despite strong underwriting, management, and revenues.
  • Given ARES’ strong fundamentals, we suggest investors consider buying into the company as share price could temporarily increase, following underwriter reports.

The SEC-enforced quiet period on underwriter research on Ares Management LP (ARES) will come to an end on May 26th, 25 days after the firm’s May 1 IPO.

The expiration of the quiet period will allow ARES’ IPO underwriters to publish research reports on the alternative asset manager, likely leading to at least a temporary increase in the price of ARES shares.

Strong Underwriting Could Lead To Flood of Positive Reports

The firm’s lengthy roster of underwriters, including BofA Merrill Lynch, J.P. Morgan Securities LLC, Barclays Capital Inc, BNY Mellon Capital Markets LLC, BMO Capital Markets Corp, Citigroup Global Markets Inc, Deutsche Bank Securities Inc, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co, Imperial Capital LLC, Houlihan Lokey Capital Inc, JMP Securities LLC, Mitsubishi UFJ Securities Inc, Keefe Bruyette & Woods Inc, Morgan Stanley & Co LLC, SMBC Nikko Securities America Inc, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc, Wells Fargo Securities LLC and UBS Investment Bank, will attempt to breathe life into the stock by unleashing a wave of positive research on ARES at the conclusion of the quiet period.

Correlation Between Underwriting and Share Price

Both the results of recent academic studies and our own research over the past two years have provided empirical evidence of a correlation between the reputation and quantity of IPO underwriters and a rise in share prices with the expiration of the quiet period; ARES’ impressive list of underwriters should prove an asset at the end of the quiet period.

Share prices usually begin to rise a few days in advance of the expiration as aggressive investors purchase shares in order to take advantage of the upcoming underwriter reports. These early buys generate an atmosphere of rising demand, causing a rise in the price of shares before the underwriters have had the opportunity to publish their reports.

Overview of ARES Business

ARES is an alternative asset management firm, offering a variety of investment strategies to its growing investor base.

About the Analyst Continue reading →