Even with the massive disruption from Hurricane Sandy, Wall Street was still able to pull of three IPOs last week — and they all turned out to be solid. Delek Logistics (NYSE:DKL), Restoration Hardware (NYSE:RH) and Southcross Energy (NYSE:SXE) saw gains of 6%, 30% and 12%, respectively.
But this week’s deal activity may not be as strong. Three companies are expected to hit the market, which are all holdovers from last week.
Here’s a look:
1. Radius Health (NASDAQ:RDUS): Founded in 2003, the company is in clinical trials for a drug that treats osteoporosis. The market opportunity is large, with about 10 million Americans suffering from the disease (according to the National Osteoporosis Foundation).
Radius Health plans to issue 6.5 million shares at a range of $8.50 to $10.50. The lead underwriters include UBS Investment Bank (NYSE:UBS) and Leerink Swann.
2. Singulex (NYSE:SGLX): The company develops diagnostics that focus primarily on cardiovascular disease (CVD). According to the Centers for Disease Control & Prevention, CVD is the leading cause of death in the U.S., accounting for 1,900 fatalities per day. The American Heart Association forecasts that about 40% of the U.S. population will have some type of CVD by 2030.
Despite this, Singulex has seen its revenues fall. For the first half of 2012, they went from $24.8 million to $20.5 million. It also lost $10.3 million for the current year.
Singulex plans to issue 4.4 million shares at a range of $15 to $17. The lead underwriters include UBS Investment Bank and Piper Jaffray.
3. Taylor & Martin Group (NYE:TMG): The company manages an auction platform for pre-owned commercial trucks and trailers, agricultural equipment and returned consumer goods, such as footwear and electronics.
It has been growing at a nice pace. For the first half of 2012, revenues went from $64.8 million to $73.3 million. EBITDA was up about 17% to $12.8 million.
But investors seem to be losing interest in the deal. Taylor & Martin Group cut the price range on its IPO to $8 to $10, down from $10 to $12. The company plans to issue 19 million shares (up from 15 million).
The lead underwriters include Canaccord Genuity, Oppenheimer & Co. and KeyBanc Capital Markets.
Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook.“ Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.
A long-time follower of the IPO scene, back in 1999 Tom started one of the first sites in the space called WebIPO. It was a place where investors got research as well as access to deals for the dot-com boom. Tom also wrote the top-selling book, Investing in IPOs. In it, he covers all the aspects of analyzing an IPO, such as reading the prospectus, detecting the risk factors and understanding some of the arcane regulations. But don’t worry — if that process is too intimidating for you, thankfully Tom will do the legwork for you right here in the IPO Playbook blog.
Comments are currently unavailable. Please check back soon.