Investing

Busy Week Ahead for IPOs

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Only four of seven initial public offerings (IPOs) planned for the past week actually made it past the post. Two others have been postponed into the coming week and will accompany 11 scheduled first-time offerings as the month of November kicks off. Finally, there is one firm that is moving from the over-the-counter market to the New York Stock Exchange MKT.

IPO ETF manager Renaissance Capital reports that 235 IPOs have priced in the United States so far this year, up about 29% from a year ago. Total proceeds raised come to $74.8 billion, up more than 72% from 2013. To date in the month of October, IPO proceeds total $5.8 billion. Last week’s IPOs added $1.2 billion to the October total. The 2013 IPO total came in at $54.9 billion, the highest total in the past 10 years, and that has already been surpassed with two months left in 2014.

The first new IPO on tap for this week is Antero Midstream Partners L.P., a master limited partnership (MLP) formed by Antero Resources Corp. (NYSE: AR) to own, operate and develop midstream assets in the Marcellus and Utica shale plays. The company plans to offer 37.5 million partnership units in an IPO price range of $19 to $20 per common unit to raise $750 million at a market cap of around $3.04 billion. Joint bookrunners for the IPO include Barclays, Citigroup, Wells Fargo Securities, Credit Suisse, J.P. Morgan and Morgan Stanley. Shares are scheduled to price on Tuesday and begin trading Wednesday on the New York Stock Exchange (NYSE) under the ticker symbol AM.

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Jaguar Animal Health Inc. develops and commercializes gastrointestinal products for companion and production animals. The company plans to offer 5 million shares in a price range of $7 to $9, raising $40 million at a market cap of about $80 million. Joint bookrunners on the offering are BMO Capital Markets and Guggenheim Securities. Roth Capital is co-manager. The IPO is set to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol JAGX.

Coherus BioSciences Inc. is a late-stage clinical biologics platform company focused on the biosimilar market. The company plans to offer 6.3 million shares in an expected range of $12 to $15, raising $85 million against a market value of around $433 million. Joint bookrunners for the IPO are J.P. Morgan and Credit Suisse. Cowen is co-manager. The IPO is scheduled to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol CHRS.

Nevro Corp. is a medical device maker that has developed and sold a neuromodulation platform for the treatment of chronic pain. The company is offering 6.3 million shares in an IPO price range of $15 to $17 to raise $100 million on a market cap of about $365 million. Joint bookrunners are J.P. Morgan and Morgan Stanley, with Leerink Partners and JMP Securities as co-managers. The shares are scheduled to price on Wednesday and begin trading on Thursday on the NYSE under the ticker symbol NVRO.

Radius Bancorp Inc. is a bank holding company for First Trade Union Bank in Boston. The company plans to offer 5 million shares in an expected price range of $11.75 to $12.75 to raise about $64 million at a market cap of about $71 million. Joint bookrunners are Baird and Sandler O’Neill. Janney Montgomery Scott and Wunderlich Securities are co-managers. The stock is scheduled to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol RADB.

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Upland Software Inc. is a provider of cloud-based enterprise work management software. The company plans to offer 3.9 million shares in an IPO price range of $12 to $14, raising $50 million at a market cap of around $186 million. William Blair and Raymond James are joint bookrunners for the offering, and Canaccord Genuity and Needham are co-managers. The stock is scheduled to price on Wednesday and to begin trading on Thursday on the Nasdaq under the ticker symbol UPLD.

Freshpet Inc. is a pet-food maker that provides fresh food for dogs and cats. The company plans to offer 10.4 million shares in an IPO price range of $12 to $14 to raise $135.4 million on a market cap of about $413 million. Joint bookrunners are Goldman Sachs and Credit Suisse. Co-managers are Baird, Stifel, Suntrust Robinson Humphrey and Canaccord Genuity. The stock is slated to price on Thursday and to begin trading Friday on the Nasdaq under the ticker symbol FRPT.

INC Research Holdings Inc. is a contract research organization (CRO) exclusively focused on Phase 1 to Phase 4 clinical development services for the biopharmaceutical and medical device industries. The company plans to offer 8.1 million shares in an expected price range of $17 to $20, raising $150 million at a market cap of around $915 million. Joint bookrunners for the offering are Goldman Sachs and Credit Suisse. Co-managers are Baird, Wells Fargo Securities and William Blair. The stock is expected to price on Thursday and to begin trading Friday on the Nasdaq under the ticker symbol INCR.

Sky Solar Holdings Ltd. is a Hong Kong-based developer, owner and operator of solar parks that generates revenue primarily through sales of electricity. The company plans to offer 12.5 million shares in an IPO price range of $10 to $12, raising about $137 million at a market cap of about $604 million. The joint bookrunners are FBR Capital Markets and Cowen. Co-managers are Roth Capital and Northland Securities. The company is expected to price the shares on Thursday and to begin trading Friday on the Nasdaq under the ticker symbol SKYS.

Triumph Bancorp Inc. is a financial holding company based in Dallas, Texas. The company plans to offer 6.7 million shares in an IPO price range of $14 to $16 to raise about $100 million on a market cap of about $249 million. Joint bookrunners for the offering are Sandler O’Neill, Evercore Partners and Wells Fargo Securities. Co-managers are Keefe Bruyette Woods and Nomura Securities.

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The Joint Corp. is a franchisor of chiropractic clinics that operate on a non-insurance, cash-based model. The company plans to offer 3 million shares of stock in an IPO price range of $9 to $11, raising $30 million at a market cap of about $92 million. Joint bookrunners are Roth Capital and Feltl and Company. Sanders Morris Harris is co-manager. The shares are expected to price and to begin trading in the week of November 3 on the Nasdaq under the ticker symbol JYNT.

One of two IPOs delayed from last week was Viking Therapeutics Inc., a clinical-stage biopharmaceutical company based in California and focused on developing therapies for metabolic and endocrine disorders. The company first planned its IPO for the week of September 22. Viking 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 continues to be listed as day-to-day. Shares will trade on the Nasdaq under the ticker symbol VKTX.

Harmony Merger Corp., another delayed IPO from last week, is a blank check company that plans to offer 10 million units (one share of common stock and one warrant to purchase three-quarters of one share of common stock on the consummation of an initial business combination) at $10 per unit to raise $100 million. The sole underwriter of the offering is Cantor Fitzgerald. Units are expected to price on Wednesday and to begin trading Thursday on the Nasdaq under the ticker symbol HRMNU. More details are available in the company’s amended Form S-1 filing.

Finally, CVSL Inc., a direct sales/micro-enterprise company building an online community of entrepreneurs and their customers, is changing its listing from the OTCQX marketplace to the NYSE MKT. The company recently effected a 20-for-1 reverse split and plans to offer 6.7 million shares of common stock at $13 per share on the NYSEMKT under the ticker symbol CVSL. Shares are currently trading on the OTCQX under the ticker symbol CVSLD. Joint managers for the offering are Cantor Fitzgerald, JMP Securities and Janney Montgomery Scott.

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