Investing

The IPO Pace Speeds Up Again Following the Alibaba Show

IPO
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When the dust finally settled and the air cleared, Friday’s initial public offering (IPO) of 320 million shares of Alibaba Group Holding Ltd. (NYSE: BABA) raised nearly $22 billion, and some investors paid a premium of more than 45% to the IPO price of $68 to get their hands on some stock. Shares closed at $93.89, up 38%, after opening at $92.70. Quite a day.

According to Renaissance Capital, 195 IPOs have priced in the United States so far this year, up 39% from a year ago. Total proceeds raised come to $62.4 billion, up about 108% from 2013. In the month of August IPO proceeds totaled just $0.9 billion, the lowest monthly total so far in 2014. September’s total so far is $22.3 billion, largely due to the size of the Alibaba offering. The 2013 IPO total came in at $54.9 billion, the highest total in the past 10 years, and that’s already been surpassed with more than three months left in 2014.

Two IPOs scheduled for last week did not materialize, and the calendar for next week includes 11 new IPOs, meaning we could see 13 new issues next week. Here’s a quick look at the companies on the IPO calendar.

rEVO Biologics Inc. is a commercial-stage biopharmaceutical firm that focuses on developing specialty therapeutics for patients with rare and life-threatening conditions. The Massachusetts-based company plans to offer 3.6 million shares in a price range of $13 to $15. At the midpoint, rEVO would gross about $50 million at a market cap of nearly $260 million. The IPO is delayed from last week. Shares will trade on the Nasdaq under the ticker symbol RBIO.

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Viking Therapeutics Inc. is another holdover from last week and is a clinical-stage biopharmaceutical company based in California that is focused on developing therapies for metabolic and endocrine disorders. The company plans to offer 5 million shares in a price range of $10 to $12, raising $55 million at a market cap of about $167 million. The IPO is listed as day-to-day. Shares will trade on the Nasdaq under the ticker symbol VKTX.

Citizens Financial Group Inc. is the 13th largest retail bank holding company in the United States. The bank plans to offer 140 million shares in a price range of $23 to $25. At the midpoint, Citizens would raise $3.36 billion at a market valuation of $13.44 billion. Shares are expected to price Tuesday and to begin trading Wednesday on the New York Stock Exchange under the ticker symbol CFG.

CyberArk Software Ltd. is an Israel-based IT security software firm. The company plans to offer 5.4 million shares in an expected price range of $13 to $15. At the midpoint, the firm would raise $75 million at a market cap of $414.1 million. Shares are expected to price Tuesday and to begin trading Wednesday on the Nasdaq under the ticker symbol CYBR.

DT Asia Investments Ltd. is a Hong-Kong based blank check company. The company will sell 6 million shares at $10 each, and it expects to raise $6.9 million, including an underwriter’s option on an additional 900,000 shares. Shares will begin trading Wednesday on the Nasdaq under the ticker symbol CADTU.

Grupo Aval Acciones y Valores S.A. is Colombia’s largest banking group. The bank will sell 73.5 million American Depositary Shares (ADSs) at a price of $14.96 per ADS. Each ADS is worth 20 ordinary shares. The bank plans to raise $1.1 billion at a market cap of $16.4 billion. Shares will begin trading Wednesday on the New York Stock Exchange under the ticker symbol AVAL.

Israel Corp. is specialty minerals company based in Israel. The firm plans to offer 62 million shares at a price of $7.41. The company will raise about $458 million from the U.S. share sale. It is also listed on the Tel Aviv exchange. Shares will begin trading Wednesday on the New York Stock Exchange under the ticker symbol ICL.

Medley Management Inc. is an asset management firm based in New York with $3.3 billion in assets under management. The firm plans to sell 6 million shares in price range of $20 to $22, raising $126 million at a market cap of $616 million. Shares will price Tuesday and begin trading Wednesday on the New York Stock Exchange under the ticker symbol MDLY.

Smart & Final Stores Inc. is a value-oriented grocery store chain based in California with stores throughout the western United States and a joint venture in Northern Mexico. The company plans to offer 13.5 million shares in an expected price range of $12 to $14 to raise about $175 million at a market cap of around $924 million. Shares will price Tuesday and begin trading Wednesday on the New York Stock Exchange under the ticker symbol SFS.

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Vitae Pharmaceuticals Inc. is a clinical stage biopharmaceutical company working on novel, small molecule drugs. The company plans to offer 8 million shares in an expected price range of $11 to $13. At the midpoint, the company will raise $60 million at a market cap of $186 million. Shares are expected to price Tuesday and to begin trading Wednesday on the Nasdaq under the ticker symbol VTAE.

Civitas Therapeutics Inc. is a biopharmaceutical firm working on developing and commercializing a treatment for certain symptoms of Parkinson’s disease. The company plans to offer 5 million shares in an IPO price range of $14 to $16, raising $60 million at a market cap of $363.2 million. Shares are expected to price Wednesday and to begin trading Thursday on the Nasdaq under the ticker symbol CVTS.

CONE Midstream Partners L.P. is a master limited partnership formed by CONSOL Energy Inc. (NYSE: CNX) and Nobel Energy Inc. (NYSE: NBL) to own, operate and develop natural gas gathering and other midstream assets in the Marcellus shale play in Pennsylvania and West Virginia. The company plans to sell 17.5 million common units in an expected price range of $19 to $21 million, raising $350 million at a market value of around $583 million. The units will price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol CNNX.

Travelport Worldwide Ltd. is a travel commerce marketplace that provides a platform for travel providers such as airlines, hotel chains, travel agencies and other buyers. The company plans to sell 30 million shares in a price range of $14 to $16, raising $450 million on a market cap of about $1.8 billion. The shares will price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol TVPT.

Vantage Energy Inc. is an independent oil and gas company focused on the Marcellus shale play in Greene County, Pa. The company plans to sell 23.6 million shares in an expected price range of $24 to $27, raising approximately $600 million at a market value of more than $1.8 billion. The shares will price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol VEI.

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