With the increased volatility in the markets last week, the performance of IPOs was mixed. Three deals — which included Taminco (NYSE:TAM), Intelsat (NYSE:I) and Hannon Armstrong (NYSE:HASI) — had to slash the terms of their deals.
Still, the market did have some bright spots, at least for top-notch operators. Returns, based on the initial offering prices, were strong for three companies. Take a look:
As for the upcoming week, there is likely to be continued turbulence since most of the deals are small. Here’s a look at each one:
BioAmber (NYSE:BIOA) uses industrial biotechnology and chemical catalysts to transform feedstocks into chemicals, replacing petroleum-derived alternatives. It has one of the largest bio-based chemical manufacturing facilities, which is based in Pomacle, France. Last year, it produced 356,900 pounds of its chemical products.
BioAmber is still in the early stages. In 2012, revenues came to $2.3 million, up from $560,000 in the year before. During this period, the net loss went from $30.6 million to $39.5 million. Still, the company thinks its addressable market opportunity is a whopping $30 billion.
GW Pharmaceuticals (NASDAQ:GWPH) develops plant-derived cannabinoid therapeutics, such as Sativex (used for the treatment for multiple sclerosis). The biggest opportunity, though, could be a new drug that treats cancer pain and is in Phase 3 clinical trials. If it gets approval, the drug could come onto the market in about a year or so.
In 2012, revenues increased about 12% to $53 million … but during this period, profits fell 9% to $4 million. Still, double-digit sales growth is promising.
At this point, GWtrades on the London AIM market. Because of that, the price of the IPO will be based on the market price when the deal is launched. The company expects to issue 3.5 million shares. The lead underwriters include Lazard Capital Markets (NYSE:LAZ) and Cowen & Company.
At the time of the offering, ING U.S. (NYSE:VOYA) will change its name to Voya Financial. Of course, the company is the U.S. insurance operation for ING Groep, which is based in Amsterdam. The main reason for the spin-off is to pay back a big chunk of its bailout funds (because of the financial crisis).
As for Voya, it has roughly 13 million customers and $461 billion in assets. But with rock-bottom interest rates, it’s been tough to generate strong returns. Last year, EBITDA went from $1.1 billion to $918.3 billion.
The company plans to issue 64.2 million shares at a range of $21 to $24. The underwriters include Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS), Citi (NYSE:C), BofA Merrill Lynch (NYSE:BAC), Credit Suisse, Deutsche Bank (NYSE:DB) and J.P. Morgan (NYSE:JPM).
QIWI (NASDAQ:QIWI): The company operates a payments system in Russia and Kazakhstan. There are over 11 million virtual wallets and more than 40,000 merchants in the network.
Growth has certainly been strong. From 2012 to 2012, revenues spiked by 43% to 8.9 billion rubles or $293 million and EBITDA surged by 81% to 1.5 billion rubles. A key part of the strategy has been the agent model, which involves having third-parties operate kiosks.
The company plans to issue 12 million shares at a range of $16 to $18. The lead underwriters include J.P. Morgan and Credit Suisse.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All 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.