ExamWorks Group Inc. and SeaCube Container Leasing Ltd. raised less than the maximum sought in their initial public offerings, while First Wind Holdings Inc. pulled its sale even after lowering its price by 31 percent.
ExamWorks, the Atlanta-based provider of medical legal services, raised $165 million selling shares at the low end of its range, data compiled by Bloomberg show. SeaCube, a container leasing company based in Park Ridge, New Jersey, completed its IPO after reducing the asking price 44 percent. First Wind of Boston postponed a $240 million IPO scheduled for yesterday because the terms that investors wanted were “not attractive,” according to Chief Executive Officer Paul Gaynor.
The offerings came as the U.S. IPO market began to show signs of rebounding after 54 companies had postponed or withdrawn sales this year. Six of the eight deals completed since the start of last week had advanced at least 13 percent in their first day of trading, with Shanghai-based Mecox Lane Ltd. surging 57 percent after raising the price for its IPO.
“It’s still a buyer’s market for IPOs,” said Jack Ablin, chief investment officer at Chicago-based Harris Private Bank, which oversees about $55 billion. “Investors are looking for more of a sure bet.”
Goldman Sachs Group Inc. in New York, Zurich-based Credit Suisse Group AG and Barclays Plc of London arranged the offering from ExamWorks, which helps companies and government agencies confirm the veracity of their employees’ claims for workers’ compensation. The company will use the IPO proceeds to repay debt and fund acquisitions, the prospectus showed.
At the IPO’s midpoint price, ExamWorks was valued at 2.3 times revenue, according to IPODesktop.com in Marina del Rey, California. That’s 64 percent more than the ratio of 1.4 for Irvine, California-based CorVel Corp., which IPOdesktop.com identified as a competitor.
SeaCube sold 9.5 million shares at $10 each after offering 7.5 million at $16 to $18. JPMorgan Chase & Co. and Citigroup Inc. in New York, Frankfurt-based Deutsche Bank AG and Wells Fargo & Co. of San Francisco led SeaCube’s sale.
First Wind, the developer and operator of wind energy projects backed by D.E. Shaw & Co., said in an e-mailed statement today it will “not move forward” with its IPO.
The company had reduced the price range for its sale of 12 million Class A shares to $18 to $20 each from $24 to $26.
“While we received significant interest from potential investors during the marketing of our IPO, the terms that the IPO market was seeking at this time were not attractive to the company,” First Wind’s Gaynor said in the statement sent by spokesman John Lamontagne.
Credit Suisse, New York-based Morgan Stanley, Goldman Sachs and Deutsche Bank were hired to arrange the IPO.
Le Gaga Holdings Ltd., a Hong Kong-based vegetable producer, will sell 10.9 million American depositary receipts at $7.50 to $9.50 each today. Charlotte, North Carolina-based Bank of America Corp. and UBS AG of Zurich are leading the IPO.
Companies from Asia have posted six of the ten largest gains among U.S. IPOs this year, according to data compiled by Bloomberg. China’s economy will grow 9.6 percent in 2011, according to estimates from the Washington-based International Monetary Fund. That compares with 2.2 percent for developed nations and 2.3 percent forecast for the U.S.
“Ultimately, the investors have the leverage because we’re going to determine how much we want and at what price we want,” said Scott Billeadeau, who helps oversee $19 billion at Fifth Third Asset Management in Minneapolis.
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