Business - New York IPOs for brands you know Private equity firms look to cash out

By Chip Cutter AP Business Writer NEW YORK (AP) -- Most investors think of initial public offerings as chances to buy the stock of young, hot and often obscure companies for the first time. But the IPOs that have been announced in the last few weeks include some familiar names, including Toys R Us and the firm that created the Nielsen television ratings. One reason for these deja vu IPOs is that the private equity firms that bought many well-known companies, and took them private during the past decade, are now trying to cash out. If the firms sell now, they will keep more of the profit than if they wait and sell next year. Although selling shares in these companies now may make good sense for their owners, buying these shares may make less sense for investors. Still, the name-brand companies may carry some appeal. Francis Gaskins of IPOdesktop.com said well-known IPOs often attract retail investors, who can personally identify with the companies. "It's not just a stock symbol on the board," he said. Recently announced IPOs: -- Nielsen Holdings (NH) Consumer ratings and research company (backed by private-equity groups) Size of IPO: Up to $1.75 billion Company outlook: Nielsen faces tough competition from rivals such as comScore, and it's saddled with a whopping $8.6 billion in debt. -- Toys R Us (TOYS) Toy retailer (backed by private-equity groups) Size of IPO: $800 million Company outlook: The toy industry is improving, and Toys R Us has been taking market share away from competitors such as Target and Wal-Mart. -- The Fresh Market (TFM) Gourmet grocery chain Size of IPO: $345 million Company outlook: The retailer operates 95 stores in the Southeast, Midwest and Mid-Atlantic regions. But it could have up to 500 stores in the U.S. in the future. -- Zipcar (ZIP) Car-sharing service Size of IPO: $75 million Company outlook: Zipcar has never posted a profit. Don't expect that to change anytime soon. The company warned potential investors that it may be difficult to make money. Published: Thu, Jun 17, 2010

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