Today’s piece is based on the Toys R Us IPO that is expected to price and trade sometime in the near future. In addition to our stocks to watch list and penny stock alerts, we want to give our readers and subscribers a brief background on the company and touch on the current perceived demand, and timing of the deal. Toys R Us is a well known company and the offering could get decent coverage on cable news networks in the upcoming weeks. We just want to give you the heads up first.
2011 has been a big year for private equity based IPO’s. Some like HCA Holdings (HCA:NYSE) did well, while others have faded. Toys R Us (TOYS:NYSE) was taken private by KKR, Bain and Vornado for $6.6 billion in 2005. Sometime in the near future, the Toys R Us IPO is expected to do $800 million. penny stocks weed This deal was rumored to come a little earlier in the year, but for some reason it never materialized. Despite the vast name recognition, and the perception of a turnaround in the business model, many IPO ratings experts are only calling for a slight first day premium, which surprised some , who expecting were Toys R US to have fast rising stock potential.
Maybe that rating is based on the street’s view balance sheet ? I tend to agree with the experts about this one not being a screamer, despite the impressive lineup of underwriters being impressive with firms like Goldman Sachs at the top of the list. Still, add this one to your list of stocks. Oddly enough, at this point, Toys R Us IPO looks like a deal that brokerage firms will probably allocate to retail clients.And trust me, that’s not always a good thing. Here is one last tip, experienced IPO investors often shy away from private equity deals. Mainly because in reality, they are on the other side of a firm like Bain or KKR’s sell trade. To make it even more simple, you are buying their stock.
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