Investing

IPO Preview: ManU Secondary Tops List of Offerings

IPO
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The 22 initial public offerings (IPO) that were originally scheduled for last week added up to the highest total since 2000. The week ahead won’t match that, but it’s another busy week with 10 companies expected to come public.

What a year it’s been so far. According to Renaissance Capital, 181 IPOs have priced in the United States so far this year, up 56% from a year ago. Total proceeds raised come to $39.8 billion, up nearly 58% from 2013. In the month of July, IPO proceeds totaled $8.4 billion, the highest monthly total so far in 2014. The 2013 IPO total came in at $54.9 billion, the highest total in the past 10 years.

The biggest event of the week is not an IPO but a secondary offering from U.K. soccer club Manchester United PLC (NYSE: MANU). The majority-owner Glazer family is selling 8 million shares (about 5%) of the English team. At Friday’s closing price of $18.50, that translates to $148 million. The underwriters have an overallotment option on 1.2 million additional shares. Following the offering, the Glazer family will own about 85% of ManU. The family also owns the NFL’s Tampa Bay Buccaneers.

IPOs scheduled last week for Lantheus Holdings, Mapi-Pharma and Sirva were postponed and have not been rescheduled.

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Here is a brief look at each of the coming week’s IPOs.

Delayed from last week, Auris Medical Holding A.G. is a Switzerland-based clinical-stage biopharma company focused on treatment of inner ear disorders. The company plans to sell 6.9 million shares in a price range of $10 to $12 in order to raise about $76 million. No date has been fixed for the IPO. Shares will trade on the Nasdaq under the ticker symbol EARS.

In another IPO that had been scheduled for last week, Tobira Therapeutics Inc., a clinical stage biopharma developing therapies for liver disease and HIV, among others, plans to offer 4.6 million shares in a price range of $12 to $14, raising $60 million. Shares are scheduled to price on Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol TBRA.

The third holdover from last week, Zosano Pharma Corp., is a clinical stage specialty pharmaceutical company that has developed a proprietary transdermal microneedle patch system to deliver its existing drugs through the skin. The company plans to offer 6.4 million shares in a price range of $10 to $12, and it expects to raise gross proceeds of around $70 million. The pricing and trading dates are not set. The stock will trade on the Nasdaq under the ticker symbol ZSAN.

Microlin Bio is a development stage diagnostics and therapeutic company that has revised its offering terms four times, but was not on the schedule last week. The company 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. 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.

Höegh LNG Partners L.P. is a shipping firm specializing storage and regasifying of liquefied natural gas (LNG). The firm plans to offer 9.6 million common units in an IPO price range of $19 to $21. For the purposes of U.S. taxes, the company will be treated as a corporation. The common units are expected to price on Wednesday and begin trading Thursday on the New York Stock Exchange (NYSE) under the ticker symbol HMLP.

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iDreamSky Technology Ltd. claims to be the largest independent game publishing platform in China. The Shenzhen-based firm plans to offer 7.7 million American Depositary Shares (ADSs) in an expected range of $12 to $14, raising about $64 million at a market cap of around $550 million. Each ADS is worth four ordinary shares. ADSs are expected to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol DSKY.

Ryerson Holding Corp. is a metals processor and distribution company with operations in the United States, Canada, Mexico and China. The company plans to offer 11 million shares in an IPO range of $17 to $20. Shares are expected to price on Wednesday and begin trading Thursday on the NYSE under the ticker symbol RYI.

T2 Biosystems Inc. is an in-vitro diagnostics company that has developed an alternative to existing diagnostic methodologies. The company plans to offer 4 million shares in an expected price range of $15 to $17. Shares are expected to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol TTOO.

Green Bancorp Inc. is a Texas-based bank holding company with 12 full-service branches in Houston, Dallas and Austin. The company plans to offer 4.7 million shares in an IPO price range of $15 to $17, raising about $75 million on a market cap of $407.5 million. Shares are expected to price on Thursday and begin trading Friday on the Nasdaq under the ticker symbol GNBC.

Independence Contract Drilling Inc. is a contract land-based drilling service for oil and natural gas producers targeting unconventional (shale and tight gas) plays in the United States. The company plans to offer 10 million shares in an IPO range of $14 to $16, to raise about $150 million at a market cap of $341 million. Shares are expected to price on Thursday and begin trading Friday on the NYSE under the ticker symbol ICD.

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