Israel's SodaStream Jumps After Raising $109 Million in U.S. Initial Sale
SodaStream International Ltd. rose 21 percent in its first day of trading after the producer of soda makers raised $109 million in its U.S. initial public offering.
SodaStream gained $4.12 to $24.12 in U.S. composite trading. The Airport City, Israel-based company yesterday sold 5.45 million shares for $20 each, the top of its forecast range, data compiled by Bloomberg show. SodaStream, which will use the proceeds to repay debt and build or buy a facility, increased the number of shares it offered yesterday from 4.74 million, its filing with the Securities and Exchange Commission showed.
The sale was the second of seven scheduled for this week and follows the busiest month for U.S. IPOs in almost three years, data compiled by Bloomberg show. SodaStream, which reported an almost ninefold increase in profit in the first six months of the year, completed its offering after the Standard & Poor’s 500 Index rallied 13 percent in September and October.
“You have tremendous growth in carbonated water, and I think they’re looking to tap into that growth,” said Michael Yoshikami, who oversees $1 billion at YCMNet Advisors in Walnut Creek, California. “This particular company is in an interesting niche, and I think it’s caught investors’ attention.”
Sales at SodaStream, whose soda machines transform tap water into sparkling water and carbonated soft drinks, increased 50 percent to $93.4 million in the six months ended June, the filing showed. Profit rose almost ninefold to $5.67 million.
JPMorgan Chase & Co. of New York and Frankfurt-based Deutsche Bank AG led the offering.
“The success of the IPO, particularly at the top of the pricing range, is a real testament to the business model and to the way it’s being received,” Daniel Birnbaum, SodaStream’s chief executive officer, said in a telephone interview.
SinoTech Energy Ltd., which provides equipment and services to boost production from oil fields in China, slumped 19 percent after completing its initial offering, the biggest first-day decline for any IPO listed on U.S. exchanges this year, according to data compiled by Bloomberg.
The Beijing-based company sold 19.74 million American depositary receipts at $8.50 each today, the middle of its range, the data show. The stock closed at $6.86.
The company will use the proceeds to buy hydraulic drilling equipment and repay debt, according to the prospectus. UBS AG of Zurich was hired to lead the sale.
SinoTech was the second IPO by a Chinese company this week. Xueda Education Group, the Beijing-based provider of tutoring services for primary and secondary school students in China, surged 32 percent yesterday after raising $128 million.
Five of the 10 largest gains among companies listing in New York this year have come from China.
JinkoSolar Holding Co., the maker of silicon wafers in China’s Jiangxi province, has gained 254 percent since its May listing. HiSoft Technology International Ltd., the Dalian, China-based company that helps businesses outsource software development, has risen 188 percent.
ChinaCache International Holdings Ltd., the Beijing-based provider of Internet content to businesses, had the biggest first-day rally for a U.S. initial offering in three years after its IPO in September.
Demand for offerings from Chinese companies has helped push the amount raised through Asian IPOs to about $140 billion this year, the most on record, data compiled by Bloomberg show. The U.S. share of global initial sales dwindled to a record low of 11 percent last month, the data show.
This Week’s Offerings
Costamare Inc., the Athens-based owner of container ships, plans to raise $226 million today, Bloomberg data show.
Three U.S. companies will offer shares tomorrow. Fresh Market Inc., the Greensboro, North Carolina-based grocer, is attempting the biggest IPO of the week with a $264 million offering, data compiled by Bloomberg show.
The grocery chain is selling 13.2 million shares at $18 to $20 each, its SEC filing showed. At the middle of the forecast range, Fresh Market would be valued at 16.4 times net assets, according to IPODesktop.com.
That’s almost six times higher than the ratio of 2.9 for Austin, Texas-based Whole Foods Market Inc., which Fresh Market identified as a competitor in its regulatory filing.
Both grocery chains are valued at 25 times estimated earnings, according to IPODesktop.com.
Primo Water Corp., the Winston-Salem, North Carolina-based provider of bottled water and water dispensers, and Cutanea Life Sciences Inc., the Malvern, Pennsylvania-based developer of treatments for skin conditions such as rosacea and acne, are also scheduled to sell shares on Nov. 4.
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