Will this be another Fender? Or will private equity make it to the IPO finish line?
There's still an IPO market out there, folks, even after Facebook's train wreck with the public-offering process (and subsequent struggles with the stock market). Apollo Global Management, the private-equity group that owns, through an affiliate, Carl's Jr. and Hardee's parent CKE has just priced an IPO for the company at between $14 and $16 a share, according to LATimes.
Apollo took CKE private in 2010 for about $700 billion and plans to sell 13.3 million shares, which would raise somewhat less than the $230 million than Reuters reported on back in June, a month after CKE filed its IPO plans with the SEC with the intention of raising $100 million. It appears that the so-called "road show" for CKE, when investment bankers including Morgan Stanley and Goldman Sachs drum up investors, has attracted more interest in the Southern California-based company than was originally expected.
A couple of weeks ago, Guggenheim Partners was an under-the-radar funding source for Magic Johnson and Stan Kasten's successful marquee campaign to buy the L.A Dodgers. Just a $125-billion private firm in a world of much bigger fish. Goldman Sachs has almost a trillion in assets under management. Morgan Stanley has over $800 billion. Guggenheim hangs out in much lower reaches, with other broker-dealers in the realms below the exalted heights of major Wall Street investment banks.
Under CEO Mark Walter, however, Guggenheim is moving aggressively to break out of this mold and distance itself from shops like MF Global, the bankrupt broker-dealer that former Goldman CEO Jon Corzine was trying to bring into the big leagues — before a failed bet on European debt and some possibly illegal maneuvers with client money sent the firm into bankruptcy (and could send Corzine to jail).