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IPO Preview: The Deluge Continues

IPO
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Of the 11 initial public offerings (IPOs) scheduled for the week ending July 19, the largest and arguably the most successful was that for TerraForm Power Inc. (NASDAQ: TERP), a yieldco spun off from SunEdison Corp. (NYSE: SUNE) that raised its expected IPO price range, priced the offering at the top of that new range and opened more than 30% above that. The company raised about $500 million in the IPO and another $65 million in private placements.

Another highly successful IPO last week was Sage Therapeutics Inc. (NASDAQ: SAGE), which priced at $18 a share and opened at $27. The company issued 4 million shares, and the stock closed its first day of trading up 67% at $30.10.

There are 14 IPOs that are on the schedule for this week, including three holdovers from last week.

The year to date has been a massive success for IPOs. According to Renaissance Capital, 156 IPOs have priced in the United States so far this year, up nearly 58% from a year ago. Total proceeds raised come to $32.3 billion, up 47% from 2013. In the month of July, IPO proceeds have totaled $900 million to date. The 2013 IPO total came in at $54.9 billion, the highest total in the past 10 years.

The largest IPO on tap for next week comes from Luxembourg-based Orion Engineered Carbons Sarl, which expects to raise $315 million by offering 18 million shares in a price range of $21 to $24. The company makes specialty and rubber carbon black, a material used in everything from paint to tires. The IPO is expected to price on Thursday and the stock begins trading on Friday on the New York Stock Exchange (NYSE) under the ticker symbol OEC.

Perhaps the best-known brand expected to hit the public markets next week is El Pollo Loco Holdings Inc., a limited-service restaurant that the company says combines the quality of food customers may find at fast casual restaurants with the service speed of quick service restaurants — sort of a McDonald’s meets Chipotle. The company plans to offer 7.1 million shares in a price range of $13 to $15 and expects to raise $100 million. Shares are set to price on Thursday and begin trading Friday on the Nasdaq under the ticker symbol LOCO.

Other new IPOs for this week include Advanced Drainage Systems Inc., a maker of high-performance thermoplastic corrugated pipe, that plans to offer 14.5 million shares in a price range of $17 to $19, raising a total of $261 million. The shares are expected to price on Thursday and begin trading Friday on the NYSE under the ticker symbol WMS.

Atara Biotherapeutics Inc. is a clinical stage biopharma firm that is developing novel therapeutics for muscle wasting conditions and oncology. The company plans to raise $75 million by selling 5 million shares in a price range of $14 to $16. Shares are expected to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol ATRA.

Immune Design Corp. is a clinical state immuno-therapy company developing products that activate the body’s own immune system to fight disease. The company expects to raise $60.5 million through the IPO sale of 4.7 million shares in a price range of $12 to $14. The shares are scheduled to price on Wednesday and begin trading on Thursday on the Nasdaq under the ticker symbol IMDZ.

Innocoll GmbH is a commercial stage specialty pharmaceutical company developing biodegradable and fully bioresorbable products. The Ireland-based company plans to raise about $75 million through the IPO of 5.4 million American Depositary Shares (ADSs) in an expected range of $13 to $15. Each ADS is equal to 13.25 ordinary shares. The ADSs are scheduled to price on Thursday and begin trading Friday on the Nasdaq under the ticker symbol INNL.

Intersect ENT Inc. is a commercial stage drug company developing products for ear, nose and throat (ENT) patients. The company plans to offer 5 million shares in an expected IPO price range of $11 to $13 to raise $60 million. The shares are expected to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol XENT.

Mapi-Pharma Ltd. is a development stage pharmaceutical company that is engaged in developing high barrier to entry and high value-added generic drugs. The Israel-based firm plans to offer 2.7 million shares in an IPO price range of $13 to $15 to raise $37.3 million. The shares are expected to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol MAPI.

Ocular Therapeutix Inc. is a biopharmaceutical firm developing therapies for diseases and conditions of the eye. The firm plans to offer 5 million shares in an IPO price range of $14 to $16 to raise $75 million. The shares are expected to price Thursday and begin trading Friday on the Nasdaq under the ticker symbol OCUL.

Spark Energy Inc. is an independent retail natural gas and electricity services provider. The company plans to offer 3 million shares in a price range of $19 to $21, raising a total of $60 million. Shares are set to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol SPKE.

Townsquare Media LLC is media and entertainment company that owns and operates radio stations, digital properties and live events in small and medium U.S. markets. The company plans to offer 8.3 million shares in an IPO price range of $14 to $16 million, raising $125 million. The shares are scheduled to price on Wednesday and begin trading on Thursday on the NYSE under the ticker symbol TSQ.

The first of the four hold-overs from last week is Medical Transcription Billing Corp. which has now been held over for two weeks. The company provides a suite of integrated Web-based solutions and business services (Software as a Service, or SaaS) to health care providers practicing in ambulatory settings. The company is based in New Jersey and its operations are located in Pakistan. The company plans to offer 4.1 million shares at an estimated price of $5 to raise $20.4 million. No firm dates are given for pricing or trading. Shares will trade on the Nasdaq under the ticker symbol MTBC.

Microlin Bio is a development stage diagnostics and therapeutic company that expects to offer 5.5 million units in a price range of $4.50 to $5.50. On July 3, the company changed its offering to create a unit comprising one share and one warrant to purchase a share at a price of $6 within five years. This IPO has been delayed for five weeks. Pricing and trading dates are once again expected this coming week, but no firm dates have been given. The stock will trade on the Nasdaq under the ticker symbol MCLB.

Pfenex Inc. is a clinical stage biotech firm that is developing a biosimilar product to compete with Lucentis for the treatment of age-related macular degeneration. The IPO has been delayed a week and the terms have been changed. The company was spun off Dow Chemical in 2009 and now plans to sell 8.1 million shares at $8 a share to raise $65 million. No firm dates are given for pricing or trading. Shares will trade on the Nasdaq under the ticker symbol PFNX.

ALSO READ: Analyst Issues Top Biotech Stocks to Buy Ahead of Earnings

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