Investing

Upcoming IPO Previews: Ally Financial Tops the List of Ten

IPO
Thinkstock
The second quarter of 2014 is off to a fast start on the initial public offering (IPO) front. Eight companies completed IPOs last week, and another dozen are scheduled to price and begin trading in the coming week. According to a report at Forbes, there were 64 IPOs in the first quarter of 2014 which raised a total of $10.6 billion. That’s the most active first quarter for IPOs since 2000 and double last year’s action.

The most closely watched of this week’s offerings will be Ally Financial, the former GMAC Inc., which collapsed in 2008 and was resuscitated by a $17 billion federal bailout. The financial services firm plans to offer 95 million shares in an expected price range of $25 to $28 a share.

Underwriters are Citigroup, Goldman Sachs, Morgan Stanley and Barclays Capital which have an over-allotment option on an additional 14.25 million shares. The U.S. Department of the Treasury owns 177.31 million shares, or 36.8% of the company. It is the seller of all 95 million shares in this offering as well as the over-allotment option. Ally Financial will receive none of the gross proceeds of $2.52 billion (calculated at the mid-point of the expected price range).

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

Another well-known name hitting the public markets next week is La Quinta Holdings Inc., an owner, operator and franchisor of select-service hotels. Last year, the company generated revenues of $909.1 million and posted a net profit from continuing operations of $44.9 million. La Quinta will offer 37.2 million shares in an expected price range of $18 to $21.

Underwriters include Morgan Stanley and J.P. Morgan, among others. The underwriters will have an option to purchase an additional 5.58 million shares at the IPO price. If the options are exercised and the IPO prices at the mid-point of the expected range, La Quinta anticipates net proceeds of $781.2 million. Proceeds will be used as partial repayment of borrowings from the company’s principal owner, The Blackstone Group LP (NYSE: BX). Blackstone will own 63.8% of the company following the IPO.

Shares are expected to price on Wednesday and to begin trading Thursday on the New York Stock Exchange under the ticker symbol “LQ”.

Now a quick rundown of the other IPOs set for next week.

Specialty pharmaceuticals maker Adamas Pharmaceuticals Inc. plans to offer 3 million shares in a price range of $16 to $18. Shares are expected to price on Wednesday and begin trading on Thursday on the Nasdaq under the ticker symbol “ADMS”.

Biotech firm Aldeyra Therapeutics Inc. will offer 2.3 million shares in an expected price range of $10 to $12. The stock will price on Thursday and begin trading Friday on the Nasdaq under the ticker symbol “ALDX”.

Cerulean Pharma Inc. is a clinical stage company that plans to sell 5 million shares in an IPO price range of $11 to $13 a share. The shares are expected to price on Wednesday and to begin trading Friday on the Nasdaq under the ticker symbol “CERU”.

City Office REIT Inc. plans to offer 6.67 million shares in an expected price range of $14 to $16 in an IPO that is set to price on Thursday and begin trading on Friday. The company, based in Atlanta, owns and operates office properties in the southern and western U.S. The stock will trade on the New York Stock Exchange under the ticker symbol “CIO”.

Master limited partnership Enable Midstream Partners LP plans to offer 25 million common units in an expected price range of $19 to $21. CenterPoint Energy Inc. (NYSE: CNP) and OGE Energy Corp. (NYSE: OGE) are the primary stakeholders in the company and will retain control of the general partner and the majority of the common units after the IPO. The common units are expected to price on Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol “ENBL”.

Farmland Partners Inc. is a REIT that plans to offer 4.7 million shares in an expected range of $14 to $16 a share. The company owns and acquires North American farmland. The shares are expected to price on Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol “FPI”.

Paycom Software Inc. provides cloud-based human resources management software. The company plans to offer 6.65 million shares in an expected price range of $18 to $20. The shares price on Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol “PAYC”.

Phibro Animal Health Corp. plans to offer 11.77 million shares in an expected price range of $16 to $18 a share. The animal health company expects to price the shares on Thursday and begin trading Friday on the Nasdaq under the ticker symbol “PAHC”.

Stalwart Tankers Inc. operates a fleet of stainless steel chemical tankers. The company plans to offer 12.5 million shares in a range of $11 to $13. Shares are expected to price on Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol “STST”.

Zoe’s Kitchen Inc. is a fast-casual restaurant operator that plans to offer 5.8 million shares in an expected range of $11 to $13. Shares price on Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol “ZOES.” This is an IPO we’ve been keeping an eye on for a while now.

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.