Via Securities Docket:
After a nearly three month period without an IPO in the United States, three companies are slated to go public in the US the week of February 9. The three companies are:
- Mead Johnson, an Indiana-based maker of baby formula, that is being spun out of its parent company, Bristol-Myers Squibb Co. Mead Johnson plans to list on the NYSE and sell 25 million shares in an estimated range of $21 to $24 per share.
- O’Gara Group Inc., a security firm, will seek to raise $144 million on the Nasdaq.
- Changing World Technologies Inc, a company that makes renewable diesel fuel, will seek to raise $35.75 million in a listing on NYSE Alternext.
Reuters reports that the last IPO to price was that of online university operator Grand Canyon Education Inc. back in Nov. 2008.
As an investor, I would be most interested in the spin-off. First, baby formula seems to be a necessary good. Mothers will always be buying it in good times or bad. Second, spin-offs usually present attractive buying opportunities due to institutional selling. For example, for funds that track indexes or have market cap rules for the stocks allowed in their fund, they will automatically be selling the new spin-off, regardless of whether its a great company.
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