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11 New Stocks to Watch – Biotech, Energy Deals Aplenty

The IPO market will have a big test as the volume of deals swells


Last week, the IPO market showed signs that it’s getting its footing back, with seven new stocks hitting the market. Some of the more notable deals included MobileIron (MOBL), which increased 22% on its first of trading, and Abengoa Yield (ABY), which shot up 27%.

initial public offering IPO new stocks to watch
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As for the upcoming week, expect the volume to be turned up even more as 11 new stocks should hit the markets — many of them from the biotech and energy sectors.

Here’s a quick look at 11 new stocks to watch this week.

New Stocks to Watch: Ardelyx (ARDX)

Expected Offering Date: Thursday

Ardelyx (ARDX) is a clinical-stage biotech company that is focused on non-systemic, small-molecule therapeutics that work on the gastrointestinal tract. Ardelyx’s goal is to battle cardio-renal and metabolic diseases.

ARDX’s lead candidate is tenapanor, which is in Phase 2 clinical trials. In fact, back in 2012, Ardelyx entered a collaboration agreement with AstraZeneca (AZN) for the worldwide development and commercialization of the drug.

Ardelyx plans to offer 3.6 million shares on the Nasdaq under the ticker “ARDX” at a range of $13 to $15 . Lead underwriters include Citi (C) and Leerink Partners.

New Stocks to Watch: Century Communities (CCS)

Expected Offering Date: Wednesday

Century Communities (CCS) is a homebuilder that has projects in major metropolitan markets in Colorado, Texas and Nevada. The company owns and controls about 99 communities containing 10,095 lots. Century generally completes a project within 24 to 36 months, which helps cut down on risk.

Last year, CCS delivered 448 homes, generating revenues of $171.1 million that were up more than 78% on a year-over-year basis. Keep in mind that it has been profitable since 2008.

Century expects to offer 4.5 million shares on the New York Stock Exchange under the ticker “CCS” at a range of $23 to $26. Lead underwriters include FBR Capital Markets, JPMorgan (JPM) and Deutsche Bank (DB).

New Stocks to Watch: Eclipse Resources (ECR)

Expected Offering Date: Friday

Eclipse Resources (ECR) is an independent exploration and production company that controls oil and natural gas properties in the Appalachian Basin. In all, the company has a position of about 227,230 net acres, about 96,240 of which are located in what is believed to be the most productive area, the Utica Shale fairway.

In the first quarter, revenues came to $24.8 million. However, there was also a loss of nearly $12 million.

Eclipse Resources plans to issue 30.3 million shares on the NYSE under the ticker “ECR” at a range of $27 to $30. The lead underwriters include Citi, Goldman Sachs (GS), Morgan Stanley (MS), Barclays (BCS), BMO Capital Markets (BMO), Deutsche Bank, KeyBanc Capital Markets and RBC Capital Markets (RBC).

New Stocks to Watch: Foresight Energy (FELP)

Expected Offering Date: Wednesday

Foresight Energy (FELP) says it is the lowest-cost and highest-margin bituminous thermal coal producer in the U.S. Foresight’s business is based in the Illinois Basin, which has proven to be a highly favorable place for such coal producers. FELP also has invested $2 billion to develop its core infrastructure.

From 2011 to 2013, revenues went from $500.8 million to $957.4 million while adjusted EBITDA ramped up from $192.4 million to $364.7 million. Meanwhile, Foresight Energy has reserves of more than 3 billion tons of coal.

Foresight Energy plans to issue 17.5 million shares on the NYSE under the ticker “FELP” at a range of $19 to $21. Lead underwriters include Barclays, Citi, Morgan Stanley, JPMorgan, Goldman Sachs and Deutsche Bank.

New Stocks to Watch: Kite Pharma (KITE)

Expected Offering Date: Friday

Kite Pharma (KITE) is a biotech company that is developing cancer products that leverages the power of a patient’s own immune system. To do this, Kite has developed a unique approach for cell therapy that focuses on modifying T cells. The lead candidate is currently in Phase 2 trials.

Kite Pharma plans to sell 6 million shares on the Nasdaq under the ticker “KITE” at a range of $12 to $14. Lead underwriters include Jefferies, Credit Suisse (CS) and Cowen & Company.

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