6 IPOs Hit the Market This Week … Maybe

Hurricane Sandy May push some of the deals back

   

So far, there have been no changes to the IPO calendar, which has six deals planned for this week. But the disruption from Hurricane Sandy may mean some or even all the deals will be moved to next week.

Regardless, here’s a look at each one:

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1. Restoration Hardware (NYSE:RH): The luxury furniture retailer has 73 locations, a catalog sent to more than 26 million people and a website with 14 million unique visitors. Since going private in 2008, Restoration has undergone a massive transformation. For example, the company has closed down many of its mall locations and has built its Design Galleries, which are roughly 21,500 square feet.

The strategy has paid off. From fiscal 2009 to fiscal 2011, net revenues have increased by 53% to $958.1 million and adjusted EBITDA has spiked by 356% to $80.2 million. Restoration Hardware should also benefit from the recovery in the real estate market, as it did for hot IPOs like Realogy Holdings (NYSE:RLGY) and Trulia (NYSE:TRLA).

Restoration Hardware plans to issue 5.2 million shares at a range of $22 to $24. Lead underwriters include BofA Merrill Lynch (NYSE:BAC) and Goldman Sachs (NYSE:GS).

2. Delek Logistics Partners (NYSE:DKL): This is a master limited partnership (MLP) that operates a crude oil pipeline system stretching from Texas to Tennessee. These types of companies have been popular because of their strong cash flows and dividends. For example, MPLX (NYSE:MPLX) saw its IPO surge 24% on its first day of trading last week.

For the first half of 2012, Delek posted pro forma EBITDA of $23.6 million, up from $17.5 million in the same period a year ago. The company plans to issue 8 million shares at a range of $19 to $21. The lead underwriters include BofA Merrill Lynch, Barclays (NYSE:BCS), Goldman Sachs, and Wells Fargo (NYSE:WFC).

3. Southcross Energy Partners (NYSE:SXE): Next up, we have another MLP. The firm operates the natural-gas pipeline for Texas, Mississippi and Alabama. For the first six months of 2012, revenues came to $226.3 million and EBITDA was $4 million. The company plans to issue 9 million shares at a range of $19 to $21. The lead underwriters include Citi (NYSE:C), Wells Fargo, Barclays and JP Morgan (NYSE:JPM).

4. Singulex (NYSE:SGLX): This company develops diagnostics for cardiovascular disease (CVD). Based on research from the Centers for Disease Control and Prevention, CVD is the leading cause of death in the U.S., accounting for 1,900 per day. The American Heart Association forecasts that about 40% of the U.S. population will have some type of CVD by 2030.

For the first half of 2012, Singulex posted revenues of $20.5 million, which is down from $24.8 million in the same period a year ago. This year’s loss was $10.3 million. Singulex plans to issue 4.4 million shares at a range of $15 to $17. The lead underwriters include UBS Investment Bank (NYSE:UBS) and Piper Jaffray.

5. Taylor & Martin Group (NYE:TMG): The company manages an auction platform for pre-owned commercial trucks andtrailers, agricultural equipment and returned consumer goods, such as footwear and electronics. For the first six months of 2012, revenues went from $64.8 million to $73.3 million. The EBITDA was up 17% to $12.8 million. The company plans to issue 15 million shares at a range of $10 to $12. The lead underwriters include Canaccord Genuity, Oppenheimer & Co. and KeyBanc Capital Markets.

6. Radius Health (NASDAQ:RDUS): This is a biotech company that is developing a treatment for osteoporosis. Radius is currently in clinical trials and has zero revenues. According to the National Osteoporosis Foundation, about 10 million Americans have osteoporosis. In fact, about 34 million have loss of bone mass, which means they have an increased risk of getting the disease. 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 and Leerink Swann.

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.


Article printed from InvestorPlace Media, http://investorplace.com/ipo-playbook/6-ipos-hit-the-market-this-week-maybe/.

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