Investing

IPOs Continue to Surge

IPO
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Last week, there were 11 initial public offerings (IPOs) scheduled, and 10 made it through. For the coming week, we’ve counted 9 pending IPOs, including one that did not make it out of the gate last week. Technology companies continue to lead the way.

The Rubicon Project, Inc.offers an automated platform for the buying and selling of digital advertising. The Los Angeles-based firm is offering 6.77 million shares in an estimated price range of $15 to $17 a share. Of the shares on offer, 5.42 million are being sold by the company, and 1.35 million are being sold by existing shareholders.

Underwriters include Morgan Stanley, Goldman Sachs, and RBC Capital Markets, and have been granted an overallotment option to purchase an additional 1.02 million shares.

Rubicon does not list its many competitors, but does call out one name: Google Inc. (NASDAQ: GOOG).

Revenues totaled $83.8 million in 2013 and the company posted a net loss of $9.2 million. In 2012 Rubicon posted a net loss of $2.4 million on revenues of $57.1 million. In 2011 revenue totaled $37.1 million and the net loss came to $15.4 million.

Rubicon expects to garner net proceeds of $77.2 million at the midpoint of the IPO price range and says it will use the proceeds for general corporate purposes.

After the offering the company will have 26.56 million shares outstanding, valuing the company at around $671 million at the midpoint of the price range. Among the company’s current investors is News Corp. (NASDAQ: NWSA), with a 19.3% stake. News Corp. plans to sell about 850,000 shares in the IPO, reducing its stake to 13.7%. Following the IPO, existing stockholders will own 43.5% of the company’s common stock.

Rubicon expects to price its IPO on Tuesday and begin trading on Wednesday on the New York Stock Exchange under the ticker symbol “RUBI”.

GrubHub Inc. offers an online and mobile platform for restaurant pick-up and delivery orders (takeout). The company plans to offer 4 million shares in an estimated price range of $20 to $22 a share. Existing investors are selling 3.03 million additional shares for a total of 7.03 million shares.

Lead underwriters are Citigroup and Morgan Stanley, and the underwriters have an option to purchase an additional 1.05 million shares.

GrubHub expects net proceeds of $76.1 million at the midpoint of the offering range. The offering is intended to create a public market for the company’s stock and facilitate the company’s future access to capital.

Shares are set to price on Thursday and begin trading on the New York Stock Exchange on Friday under the ticker symbol “GRUB”.

Opower Inc. is a provider of cloud-based software to the utilities industry. The company plans to offer 6.1 million shares in a price range of $17 to $19 a share. Utility companies use Opower’s software to provide customers with data and recommendations on reducing energy consumption.

Underwriters, including Morgan Stanley and Goldman Sachs, have been granted an overallotment option on 915,000 additional shares.

The company expects net proceeds of $100 million at the midpoint of the IPO price range. Opower plans to use the proceeds for working capital and general corporate purposes.

The IPO is expected to price on Thursday, and the stock will begin trading on Friday on the New York Stock Exchange under the ticker symbol ‘“OPWR”.

Here’s a brief look at the other IPOs tentatively on tap for this week.

1347 Property Insurance Holdings Inc. is a property and casualty insurance holding company that plans to offer 2.3 million shares in a price range of $10 to $12. Shares are expected to price on Tuesday and begin trading on Wednesday on the Nasdaq Capital Market under the ticker symbol “PIH”. This IPO was delayed from last week.

Five9 Inc. provides cloud-based customer contact centers. The company plans to offer 10 million shares in an estimated price range of $9 to $11 a share. Shares are scheduled to price on Thursday and begin trading on Friday under the ticker symbol “FIVN” on the Nasdaq.

Tarena International Inc. is a Beijing-based provider of professional educational services in the Chinese market. The company plans to offer 15.3 million American Depositary Shares (ADSes) in an estimated price range of $8 to $10. One ADS is equal to one ordinary share. Shares are set to price on Wednesday and begin trading on Thursday on the Nasdaq under the ticker symbol “TEDU”.

Corium International Inc. is a commercial stage biopharmaceutical firm that develops, makes, and sells specialty pharmaceutical products. The company plans to offer 5.5 million shares in an estimated price range of $10 to $12. The shares are expected to price on Wednesday and begin trading on Thursday under the ticker symbol “CORI” on the Nasdaq Global Market.

Scynexis Inc. is a development state pharmaceutical firm currently developing a treatment for fungal infections in humans. The company plans to offer 4.2 million shares in an estimated price range of $12 to $14 a share. The shares are set to price on Wednesday and begin trading on Thursday under the ticker symbol “SCYX” on the Nasdaq Global Market.

IMS Health Holdings Inc. provides information and technology services to the healthcare industry. The company plans to sell 65 million shares in an estimated price range of $18 to $21 a share, for total proceeds of $1.27 billion at the midpoint of the price range. The IPO is expected to price on Thursday and shares will begin trading on Friday under the ticker symbol “IMS” on the New York Stock Exchange.

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