IPO Outlook: 8 IPOs Including Old Mutual Asset Management & Dave and Buster's

The week of October 6 expects eight initial public offerings.

Old Mutual (OM) Asset Management OMAM will be the largest IPO with $352 million in proceeds if it prices 22 million shares in the middle of its $15 to $17 range.

Old Mutual is a holding company that operates seven diversified, boutique asset management firms with a collective $214 billion of AUM (assets under management). Its affiliates operate global businesses, all headquartered across the United States. Currently, Old Mutual manages assets for clients across 28 countries including Switzerland, the UK, South Korea and Australia.

OM Asset Management prides itself on combining the entrepreneurial spirit, talent, and creativity with the resources and infrastructure of a larger firm. According to its S-1, “[The company] leverage[s] the expertise and resource within [its] organization to engage actively with...Affiliates and provide them with capabilities generally unavailable to specialist asset management firms.”

Each affiliate produces its own products. On average, senior management of the affiliates have approximately 24 years of industry-relevant service. In total, the affiliates maintain 88 model portfolios, 79 of which have beaten their respective benchmarks since inception through June 30 of this year.

One of OM Asset Management’s major risks on a forward-looking basis is losing an affiliate relationship. Its two largest partners -- Barrow, Hanley, Mewhinney & Straus and Acadian -- represent 78 percent of revenue.

Most of Old Mutual’s affiliates are RIAs with 94 percent of revenue being derived from management fees. Since 2011, the company has grown its management fee revenue stream by approximately six percent per year from $420 million to $499 million.

Old Mutual expects to price its 22 million share IPO on Thursday between $15 and $17. Underwriters for the offering are Bank of America Merrill Lynch, Morgan Stanley, Citigroup, and Credit Suisse.

Other offerings for the week:

Thursday, October 9

Hub Spot HUBS: 5 million shares between $19 and $21 through Morgan Stanley, J.P. Morgan, and UBS.

MOL Global MOLG: 19.5 million ADSs between $12.50 and $14.50 through Citigroup, Deutsche Bank, and UBS.

Neuro Sigma NSIG: 3.6 million shares expect to price between $13 and $15 through Jefferies.

OM Asset Management OMAM: 22 million shares expect to price between $15 and $17 through Bank of America Merrill Lynch, Morgan Stanley, Citigroup, and Credit Suisse.

USD Partners USDP: 8.9 million shares expect to price between $19 and $21 through Citigroup, Barclays, and Bank of America Merrill Lynch.

Friday, October 10

Dave and Buster's PLAY: 5.9 million shares expect to price between $16 and $18 through Jefferies, Piper Jaffray, William Blair, Raymond James, and Stifel.

Diplomat Pharmacy DPLO: 13.3 million shares expect to price between $14 and $16 through Credit Suisse and Morgan Stanley.

Timing Unknown

Veritex VBTX: 2.7 million shares expect to price between $12 and $14 through Sandler O’Neill and Stephens.

Disclosure: At the time of writing, the author holds no positions in the mentioned securities.