Among the companies which are anticipated to go public this week, the initial public offering of coal producer Cloud Peak Energy Inc. gains attention. Other companies, which are expected to trade in the public market in the days ahead include Fortinet, Inc., HealthPort, Inc., Archipelago Learning, Inc. and Global Defense Technology & Systems Inc. The fresh round of IPO wave comes amid rousing response to retailers Dollar General Corp. (DG), and rue21 Inc. (RUE), which advanced notably on their first day of trading on Friday.
Cloud Peak Energy:
Coal producer Cloud Peak Energy, which is planning to sell 30.60 million shares of common stock in its initial public sale, recently disclosed that it expects to price the offering between $16 and $18 per share.
Cloud Peak Energy's common stock has been approved for listing on the New York Stock Exchange under the symbol "CLD." Cloud Peak Energy Inc. was incorporated in Delaware on July 31, 2008 in anticipation of an initial public offering.
Cloud Peak Energy will be a holding company that manages CPE LLC, and that its only business and sole asset will be its managing member interest in CPE LLC. Following the completion of this offering, Cloud Peak Energy Resources LLC, or CPE LLC, will own Rio Tinto America Inc.'s western U.S. coal business, except for the Colowyo coal mine in Colorado.
Cloud Peak Energy specified that it will own about 51.67% and Rio Tinto America will own indirectly approximately 48.33% of the economic interest in CPE LLC. Rio Tinto plc (RTP, RIO.L) is the ultimate parent company of Rio Tinto America.
Concurrently with this offering, CPE LLC is expected to enter into a $400 million senior secured revolving credit facility, or CPE LLC's revolving credit facility, and to issue $600 million of senior unsecured notes in two tranches maturing in 2016 and 2019.
The company, disclosed in the filing that the demand for, and consumption of, coal in the electric power sector is projected to decline in 2009. Citing EIA's projections that were issued in April 2009, the company noted that, however, the long-term demand for electricity is projected to increase at an average annual rate of about 0.5% from 2008 through 2020. Worldwide recoverable coal reserves are estimated to be approximately 929.0 billion tons based on the EIA's International Energy Annual 2009.
For the nine months ended September 30, 2009, Cloud Peak Energy reported revenues of $1.06 billion and income from continuing operations of $133.69 million on a pro forma basis.
Fortinet:
Fortinet Inc., which filed for its initial public offering in August 2009, plans to price the sale of 12 million shares of its common stock in the range of $9 to $11 per share. Fortinet is offering 5.78 million shares and the selling stockholders are offering 6.22 million shares. Fortinet, a worldwide provider of network security appliances, said it has applied to have its common stock listed on the Nasdaq Global Market under the symbol "FTNT"
According to IDC Worldwide Security Appliances Tracker, September 2009, Fortinet held 15.4% share of the Unified Threat Management or UTM appliance market for the second quarter of 2009. The company also specified in the filing that the UTM market will grow from $1.3 billion in 2007 to $3.5 billion in 2012, citing a IDC forecast.
For the nine-months ended September 2009, Fortinet reported revenue of $181.4 million and net income attributable to common stockholders of $6.97 million.
Ken Xie, company's Co-Founder, President, Chief Executive Officer and Director, Michael Xie, Co-founder and Chief Technical Officer, John Walecka, Non-Executive Chairman of the Board, Entities affiliated with Redpoint Ventures and Meritech Capital hold majority stake in the Sunnyvale, California company.
HealthPort:
HealthPort Inc. plans offering 6 million shares of its common stock in an initial public offering to be priced between $14 and $16 per share. The company disclosed in the filings that it has applied to have its common stock approved for listing on The NASDAQ Global Market under the symbol "HPRT"
HealthPort is a provider of healthcare information services and technology solutions to nearly 1,900 hospitals and health systems and 8,000 independent and hospital-affiliated physician clinics.
For the nine months ended September 30, 2009, the company generated net revenue of $193.2 million and incurred a net loss of $8.9 million.
After this offering, ABRY Partners, LLC, through its affiliated funds, will own approximately 56% of HealthPort's common stock.
Archipelago Learning:
Archipelago Learning, Inc., a subscription-based online education company, disclosed in recent regulatory filings that it plans offering approximately 3.12 million shares of its common stock, and the selling stockholders are offering about 3.12 million common shares in the initial public offering, which is expected to be priced between $15 and $17 per share.
The company said it expects that its common stock to be listed on The NASDAQ Stock Market LLC under the symbol "ARCL". Providence Equity Partners is the main stockholder of Archipelago.
For the nine-months ended September 2009, the company reported service revenue of $32.68 million and net income of $6.8 million.
Global Defense Technology & Systems:
Global Defense Technology & Systems, Inc., which will be listing its common stock on the Nasdaq Global Market under the symbol "GTEC", in a recent filing disclosed that it anticipates pricing its initial public offering of 4.60 million shares of its common stock in the range of $14 to $16 per share. The company said it is selling 3 million shares and the selling stockholders are offering 1.6 million shares.
Global Defense Technology, which provide mission-critical technology-based systems, solutions, and services for national security agencies and programs of the U.S. Government, generated $157.07 million in revenue and posted $2.83 million net income for the first nine-months of 2009. Damian Perl, one of its directors, holds majority stake in the company.
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