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13 New Stocks to Watch: Ally Financial, La Quinta on Deck

Even though the general market has been volatile, the IPO machine continues to churn


Internet and social stocks such as Facebook (FB), LinkedIn (LNKD) and Yelp (YELP) got whacked Friday and were hurting more today. But you wouldn’t have noticed based on any reaction from the IPO market, which saw new stocks such as GrubHub (GRUB), The Rubicon Project (RUBI) and Opower (OPWR) debut with strong results.

Things aren’t getting any less hectic this week, as we’ll see 13 new stocks come to market. The most notable IPOs should be Ally Financial (ALLY) and La Quinta (LQ), but let’s take a look at the whole kit and caboodle. Here are 13 new stocks to watch this week:

New Stocks to Watch: Adamas Pharmaceuticals (ADMS)

Expected Offering Date: Thursday

Adamas Pharmaceuticals (ADMS) is a biotech company that is focused on chronic disorders that affect the central nervous system. Adamas’ approach is to use pharmacokinetic profiles of approved drugs, which helps reduce costs and time to market.

ADMS’ lead drug is ADS-5102, which treats a complication of Parkinson’s disease known as levodopa induced dyskinesia, as well as behavioral symptoms associated with traumatic brain injury. Adamas expects to send ADS-5102 into Phase 3 clinical trials next.

Adamas Pharmaceuticals plans to issue 3 million shares on the Nasdaq at a range of $16 to $18. Lead underwriters include Credit Suisse (CS) and Piper Jaffray (PJC).

New Stocks to Watch: Ally Financial (ALLY)

Expected Offering Date: Thursday

Ally Financial (ALLY) is a top auto finance company whose roots go back to 1919, when it was a division of General Motors (GM). However, during the financial crisis of 2008, the firm took a $17.2 billion bailout from the federal government. In fact, all proceeds from the upcoming IPO will go to the U.S. Treasury.

Since the bailout, Ally has made great strides, selling off its offshore businesses and mortgage operations. The company also got an exemption from liability exposure from its subprime segment (called ResCap). The company’s network now includes about 16,000 auto dealers in the U.S. and 784,000 banking customers.

Last year, Ally Financial posted earnings of $361 million on revenues of $4.26 billion.

Ally Financial expects to issue 95 million shares on the New York Stock Exchange at a range of $25 to $28. Lead underwriters include Citi (C), Goldman Sachs (GS), Morgan Stanley (MS), Barclays (BCS), BofA Merrill Lynch (BAC), Deutsche Bank (DB) and JPMorgan (JPM).

New Stocks to Watch: Cerulean Pharma (CERU)

Expected Offering Date: Thursday

Cerulean Pharma (CERU) is a clinical-stage biotech company that has a tumor targeting platform. The underlying science involves exploiting the leakiness of new blood vessels, which Cerulean believes can help treat cancer.

Cerulean’s lead candidate is CRLX101, which is in Phase 2 trials. Some of the diseases CRLX101 focuses on include renal cell carcinoma, relapsed ovarian cancer and neoadjuvant rectal cancer.

Cerulean intends to sell 5 million shares on the Nasdaq at a range of $11 to $13. The lead underwriter is Leerink Partners.

New Stocks to Watch: City Office REIT (CIO)

Expected Offering Date: Friday

City Office REIT (CIO) is a real estate investment trust that focuses on 12 markets in southern and western parts of the United States. With the IPO, City Office REIT will complete the acquisition of six office complexes — in Boise, Idaho; Denver; Portland, Ore.; Tampa, Fla.; Orlando, Fla.; and Allentown, Pa. — with a total of about 1.85 million square feet.

Going forward, City Office plans to pull off other acquisitions, but they will be in the $20 million to $50 million range because the company believes “that large institutional investors and public REITs are focused on larger acquisition opportunities.”

City Office REIT plans to issue 6.7 million shares on the NYSE at a range of $14 to $16. Lead underwriters include Janney Montgomery Scott, Wunderlich Securities and Oppenheimer.

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