Can issuers be more realistic?

fionalsh — Thu, 04 Feb 2010 08:16:28 +0000

Bankers working with Chu Kong Petroleum and Natural Gas Steel Pipe must have done something amazing to convince these Chinese issuers to price the deal at the bottom of the price range. The up to HK$3.32bn HK IPO of International Mining Machinery has attracted similar price-sensitive demand but market rumours are that the issuer is reluctant to price the deal at the lower end of the range. Pricng discussion is still ongoing.

QuinStreet IPO looks to stay fresh

slacey — Wed, 27 Jan 2010 21:22:52 +0000

QuinStreet, a profitable provider of internet advertising services, launched marketing of a US$190m initial public offering. The all-primary offering is lower than the US$250m target on the firm’s original regulatory filing, based on a revised 10m shares at US$17–$19 target set earlier in the week. Pricing is targeted for February 10 through lead managers Credit Suisse, Bank of America Merrill Lynch, and JP Morgan.

In a somewhat unusual move, QuinStreet provided preliminary results for its fiscal second ended December 31, though it noted that the results are not audited – companies can use September quarter-end numbers to market off of until February 12, when regulators deem the results stale. Pricing is scheduled for February 10. The decision not to wait for audited seems to be designed to get ahead of the growing IPO pipeline.

QuinStreet said it expects to report net earnings of US$2m on revenue of US$76m, and that cash & equivalents and total debt would stand at US$34m and US$107m, respectively. The company, which has received US$60m of backing from venture capitalists led by Sutter Hill Ventures, would boost pro forma cash reserves to about US$200m on the offering.

ECM Exchange » launched

Can issuers be more realistic?

QuinStreet IPO looks to stay fresh