JustPaste.it

NEW YORK—Dave & Buster's Entertainment Inc., a restaurant chain with games for grownups, and identity-theft guardian LifeLock Inc., will headline what is shaping up as one of the busiest weeks for IPOs in months.

 

Collectively, the coming week's six deals—the most since late July—are expected to raise just over $1 billion, according to Dealogic.

Claudio Papapietro for The Wall Street Journal

 

A Dave & Buster's Entertainment arcade in Times Square.

 

Initial public offerings served up by restaurants mostly have notched big gains this year, and analysts said the Dave & Buster's IPO could catch the tailwinds from the industry's strong performance. Outback Steakhouse operator Bloomin' Brands Inc. and Mexican eatery chain Chuy's Holdings Inc.have climbed 50% and 89% since their respective August and July offerings. Del Frisco's Restaurant Group Inc., which also went public in July, is up 15%.

 

Dave & Buster's operated 59 stores in 25 states and Canada as of its Sept. 4 regulatory filing. While many restaurants try to turn tables over quickly to drive food and beverage sales, Dallas-based Dave & Buster's aims for patrons to linger and play games like four-person air hockey and a host of video games that reward players with tickets redeemable for prizes.

 

"It's unique, but they could benefit to some degree from the great reception from other restaurant IPOs," said Greg Leffert, analyst at Renaissance Capital, an IPO research and investment-management firm.

 

A little more than half the company's total revenue was derived from its entertainment offerings in fiscal 2011. The relatively low costs of its entertainment segment, which primarily stem from prize items like quesadilla makers and electric guitars, contributed 85% margins over that time.

Net income was $300,000 on revenue of $575.7 million in the 12 months ended July 31. In fiscal years 2010 and 2011, however, the company netted losses of $7 million and $7.3 million, respectively.

 

Dave & Buster's is using its IPO to pay down some $80 million in senior debt held by private-equity owner Oak Hill Capital Partners, which will retain control of about two-thirds of the total share count after the sale. Oak Hill bought the chain from another private-equity firm—Wellspring Capital Management—for $570 million in 2010.

Dave & Buster's is scheduled to start trading Friday, under the ticker "PLAY," on the Nasdaq Stock Market.

 

LifeLock, which is looking to sell 9.5 million shares in a deal valued at $164 million, is due to launch Wednesday. The company sells subscriptions to identity-theft protection services, with prices ranging from $10 to $25 a month for services that alert users to credit threats and monitor personal information.

Revenue rose 30% in the first six months of 2012 to $118 million, though the company has never posted a profit.

 

The company plans to use about $62.6 million of the funds to repay a term loan stemming from a recent acquisition. Its stock is expected to trade under the symbol "LOCK" on the New York Stock Exchange.

 

The largest deal is from Berry Plastics Group Inc., which makes products like trash bags and single-serving cutlery sets. The company is expected to launch a $500 million deal Thursday, listing under the ticker "BERY" on the NYSE.

 

Other deals expected Wednesday include U.K.-based Luxfer Holdings PLC, which manufactures specialty materials based on magnesium, zirconium and rare earths, as well as aluminum-based gas-containment cylinders. American depository shares for the $104 million offering will trade on the NYSE under the ticker "LXFR."

 

Regulus Therapeutics Inc., a biopharmaceutical company, is scheduled to bring its $50.6 million deal to the Nasdaq Stock Market Wednesday under the ticker "RGLS."

On Friday, Fleetmatics Group Ltd. will kick off its $125 million IPO on the NYSE under the ticker "FLTX." Its software platform allows businesses to manage their local fleets of commercial vehicles, providing data on vehicle location, fuel usage, speed and mileage.