11 New Stocks to Watch – Biotech, Energy Deals Aplenty

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

     

New Stocks to Watch: Markit (MRKT)

Expected Offering Date: Thursday

Markit (MRKT) is a global provider of premium financial information, such as pricings of alternative assets, indices and valuations. Markit offers services for trade processing.

From 2011 to 2013, revenues grew from $762.5 million to $947.9 and EBITDA increased from $305 million to $421.3. There are over 3,000 institutional customers.

Markit plans to issue 45.7 million shares on the Nasdaq under the ticker “MRKT” at a range of $23 to $25. The lead underwriters include BofA Merrill Lynch (BAC), Barclays, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC (HBC), JPMorgan, Morgan Stanley, UBS Investment Bank (UBS), BNP Paribas, Jefferies, RBC Capital Markets, RBS and TD Securities (TD).

New Stocks to Watch: Parnell Pharmaceuticals Holdings (PARN)

Expected Offering Date: Wednesday

Parnell Pharmaceuticals Holdings (PARN) develops animal health solutions, including lead products estroPLAN and GONAbreed, which help with cattle breeding. Parnell also has software that helps with the administration of the drugs.

However, PARN is still fairly small, posting revenues of just $4.3 million for the nine months ended March 31, 2014, and a substantial loss of $6.3 million.

Parnell expects to sell 3.6 million shares on the Nasdaq under the ticker “PARN” at a range of $17 to $19. The lead underwriters include Jefferies and Piper Jaffray (PJC).

New Stocks to Watch: Syndax Pharmaceuticals (SNDX)

Expected Offering Date: Thursday

Syndax Pharmaceuticals’ (SNDX) lead product is entinostat, which is a therapy for treatment-resistant cancers. The drug is now in Phase 3 trials.

The drug’s current application is for metastatic breast cancer, but Syndax thinks there are is broader potential for entinostat; for example, SNDX is pursuing earlier-stage trials for lung cancer.

The company plans to issue 4.3 million shares on the Nasdaq under the ticker “SNDX” at a range of $13 to $15. Lead underwriters include Deutsche Bank and Jefferies.

New Stocks to Watch: Viper Energy Partners (VNOM)

Expected Offering Date: Wednesday

Viper Energy Partners (VNOM) is a limited partnership that is focused on oil and natural gas exploration. Viper’s main are in the Permian Basin in West Texas, which has been a significant source of oil since the 1920s. And because of fracking and horizontal drilling, the area has seen rampant growth over the past few decades.

More recently Viper booked Q1 2014 revenues of $15.9 million, which translated into earnings of $3.9 million.

Viper Energy Partners plans to issue 5 million shares on the Nasdaq under the ticker “VNOM” at a range of $19 to $21. Lead underwriters include Barclays, Credit Suisse and Wells Fargo Securities (WFC).

New Stocks to Watch: Zafgen (ZFGN)

Expected Offering Date: Thursday

Zafgen (ZFGN) is a clinical-stage biotech company that is developing drugs to treat obesity. Its lead candidate, Beloranib, includes a twice-weekly subcutaneous injection, and currently is in Phase 2a clinical trials.

The drug is meant to treat a severe form of obesity, called Prader-Willi Syndrome, or PWS. Often, the disease is diagnosed for early teens. However, Zafgen believes its medical technology could be beneficial for obesity for the general population.

Zafgen plans to issue 5 million shares on the Nasdaq under the ticker “ZFGN” at a range of $14 to $16. Lead underwriters include Leerink Partners and Cowen & Company.

New Stocks to Watch: ZS Pharma (ZSPH)

Expected Offering Date: Wednesday

ZS Pharma (ZSPH) is a biotech company focused on creating non-absorbed drugs to treat renal, cardiovascular, liver and metabolic diseases. At the core is a proprietary zirconium silicate technology used to create ion traps that can reduce toxicity in targeted electrolytes.

The lead candidate, ZS-9, is in Phase III trials testing its efficacy on patients with hyperkalemia, a life-threatening disease where potassium reaches elevated levels.

ZS Pharma expects to issue 5 million shares on the Nasdaq under the ticker ZSPH at a range of $15 to $17. Lead underwriters include JPMorgan and Credit Suisse.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.

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