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The market for initial public offerings will look for its next big winner in Xoom Inc., a fast-growing money-transfer service for immigrants in the U.S. looking to send money to their home countries.
IPOs have gotten off to a fast start in 2013. Companies raised more than $4.8 billion in January on U.S. exchanges, the most in the first month of any year, according to Dealogic. Another $525 million has been raised so far in February. Each of the past four weeks has brought at least one new issue that remains 20% or more above its debut price.
San Francisco-based Xoom is looking to raise as much as $86.3 million and notch a starting market value as high as $468 million.
Xoom operates Xoom.com, a money-transfer business that lets people living in the U.S. use Web-connected computers and smartphones to send money internationally.
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Warren Buffett is one of the most successful investors of all time. MarketWatch's Rex Crum looks at stocks Mr. Buffett's Berkshire Hathaway and insiders within the company have bought over the past 90 days. (Photo: AP/Getty Images)
The market for so-called remittances is poised to grow: Since 2004, the global market has expanded at a 12% annual rate, to $513 billion in 2011, according to the World Bank, and it is expected to grow an additional 7% a year through 2015.
Xoom offers cash transfers to 30 countries outside the U.S, though transfers from the U.S. to the Philippines, India and Mexico represent about three-quarters of its business. Nearly a quarter of its transactions are sent through mobile devices.
"You no longer need to walk to an agent location during business hours, fill out forms, queue up, and wait another 10 minutes for the teller to process the transaction," said James Friedman, an analyst at Susquehanna Financial Group LLP, which isn't helping to underwrite the IPO. "With Xoom.com, you can send money 24/7, within minutes, at a smaller cost."
The company generates revenue primarily from transaction fees. While its revenues so far represent a scant to 2% to 3% of those of industry leader Western Union Co. , competitive pricing and consistent growth could help it build market share, Mr. Friedman said.
Xoom's fast growth has attracted investment from venture capital firms including Sequoia Capital LLC, which will retain a roughly 18% stake after the offering, according to the Xoom's filings. Other early investors will keep roughly 40%.
Xoom's revenue grew 68% in the first nine months of 2012, to $57.8 million. The company hasn't reported a profit in any full year and booked a net loss of $4.3 million for the nine months that ended in September, as marketing and customer-service costs increased.
The stock is slated to list Friday on the Nasdaq Stock Market under the ticker XOOM.
Also on tap in the coming week is ConnectOne Bancorp Inc., a community bank chain founded in 2005 and based in Englewood Cliffs, N.J.
ConnectOne, formerly known as North Jersey Community Bancorp Inc., operates eight branches and holds a loan portfolio made up largely of commercial-real-estate and business loans. Profit grew 28%, to $6.1 million, during the first nine months of 2012 from a year earlier.
Shares of the last two bank IPOs haven't fared well. Miami's Capital Bank Financial Corp. and Colorado's National Bank Holdings Corp. both are trading below their September IPO prices.
ConnectOne plans to list on the Nasdaq Stock Market on Tuesday under the ticker CNOB.
Two medical-test makers could make it to market in the coming week. Cancer Genetics Inc. will look to raise as much as $40 million by listing on the Nasdaq. The early-stage company develops tests using DNA for diagnosing hard-to-detect blood, ovarian and cervical cancers. The Rutherford, N.J., company is to start trading on the Nasdaq Wednesday under the ticker CGIX.
A holdover from last week may again make an approach to the market, according to bankers working on the deal. AutoGenomics, of Vista, Calif., makes genetic tests used to determine a predisposition toward, or the presence of, diseases and other medical conditions. The company is looking to raise as much as $66 million on the Nasdaq Stock Market under the ticker AGMX.
The market for initial public offerings will look for its next big winner in Xoom Inc., a fast-growing money-transfer service for immigrants in the U.S. looking to send money to their home countries.
IPOs have gotten off to a fast start in 2013. Companies raised more than $4.8 billion in January on U.S. exchanges, the most in the first month of any year, according to Dealogic. Another $525 million has been raised so far in February. Each of the past four weeks has brought at least one new issue that remains 20% or more above its debut price.
San Francisco-based Xoom is looking to raise as much as $86.3 million and notch a starting market value as high as $468 million.
Xoom operates Xoom.com, a money-transfer business that lets people living in the U.S. use Web-connected computers and smartphones to send money internationally.
Related Video
Warren Buffett is one of the most successful investors of all time. MarketWatch's Rex Crum looks at stocks Mr. Buffett's Berkshire Hathaway and insiders within the company have bought over the past 90 days. (Photo: AP/Getty Images)
The market for so-called remittances is poised to grow: Since 2004, the global market has expanded at a 12% annual rate, to $513 billion in 2011, according to the World Bank, and it is expected to grow an additional 7% a year through 2015.
Xoom offers cash transfers to 30 countries outside the U.S, though transfers from the U.S. to the Philippines, India and Mexico represent about three-quarters of its business. Nearly a quarter of its transactions are sent through mobile devices.
"You no longer need to walk to an agent location during business hours, fill out forms, queue up, and wait another 10 minutes for the teller to process the transaction," said James Friedman, an analyst at Susquehanna Financial Group LLP, which isn't helping to underwrite the IPO. "With Xoom.com, you can send money 24/7, within minutes, at a smaller cost."
The company generates revenue primarily from transaction fees. While its revenues so far represent a scant to 2% to 3% of those of industry leader Western Union Co. , competitive pricing and consistent growth could help it build market share, Mr. Friedman said.
Xoom's fast growth has attracted investment from venture capital firms including Sequoia Capital LLC, which will retain a roughly 18% stake after the offering, according to the Xoom's filings. Other early investors will keep roughly 40%.
Xoom's revenue grew 68% in the first nine months of 2012, to $57.8 million. The company hasn't reported a profit in any full year and booked a net loss of $4.3 million for the nine months that ended in September, as marketing and customer-service costs increased.
The stock is slated to list Friday on the Nasdaq Stock Market under the ticker XOOM.
Also on tap in the coming week is ConnectOne Bancorp Inc., a community bank chain founded in 2005 and based in Englewood Cliffs, N.J.
ConnectOne, formerly known as North Jersey Community Bancorp Inc., operates eight branches and holds a loan portfolio made up largely of commercial-real-estate and business loans. Profit grew 28%, to $6.1 million, during the first nine months of 2012 from a year earlier.
Shares of the last two bank IPOs haven't fared well. Miami's Capital Bank Financial Corp. and Colorado's National Bank Holdings Corp. both are trading below their September IPO prices.
ConnectOne plans to list on the Nasdaq Stock Market on Tuesday under the ticker CNOB.
Two medical-test makers could make it to market in the coming week. Cancer Genetics Inc. will look to raise as much as $40 million by listing on the Nasdaq. The early-stage company develops tests using DNA for diagnosing hard-to-detect blood, ovarian and cervical cancers. The Rutherford, N.J., company is to start trading on the Nasdaq Wednesday under the ticker CGIX.
A holdover from last week may again make an approach to the market, according to bankers working on the deal. AutoGenomics, of Vista, Calif., makes genetic tests used to determine a predisposition toward, or the presence of, diseases and other medical conditions. The company is looking to raise as much as $66 million on the Nasdaq Stock Market under the ticker AGMX.
