7 IPOs Look to Brave Rocky Markets

Strength in the IPO market could come under pressure this week.

     

Last week, 7 deals came to the market and the overall performance was fairly strong. Just look at Burlington Stores (BURL), which was up 52%, and RE/MAX (RMAX), whose shares gained 49%. And then there was Potbelly (PBPB), which posted a sizzling 120% return.

This week’s lineup isn’t nearly as strong, though. What’s more, continued volatility in the markets will likely be an issue, especially as it looks like there is little progress with the government shutdown and potential failure to raise the debt limit. If the bearishness continues, we could see some IPO delays.

But let’s take a look the 7 companies that are planning to hit the market this week:

1. Antero Resources (NYSE:AR)

This is an independent oil and natural gas company, which has operations in the Appalachian Basin in West Virginia, Ohio and Pennsylvania. For the most part, the focus is on shale opportunities. In all, the total proven reserves are 6.3 trillion cubic feet of natural gas equivalent, with more than 4,500 potential horizontal well locations.

But for the first half of this year, the business has experienced a drop in revenues, which have gone from $592.7 million to $448.6 million. Yet the company was able to post operating income for 2013 at nearly $200 million.

The company plans to issue 30 million shares at a range of $38 to $42, and the lead underwriters include Barclays (BCS), Citi (C), J.P. Morgan (JPM), Credit Suisse (CS), Jefferies and Wells Fargo (WFC).

2. LDR Holding (NASDAQ:LDRH)

LDR develops medical devices that help with surgeries for the treatment of patients suffering from spine disorders. The company believes its products — which include VerteBRIDGE fusion and Mobi — are less invasive, allow for easier procedures and result in improved clinical outcomes.

From 2010 to 2012, revenues went from $58.9 million to $90.9 million, but the company has  posted considerable losses, which reached $9.7 million last year.

The company plans to issue 5 million shares at a range of $14 to $16. The lead underwriters include Piper Jaffray, William Blair and Bryan, Garnier & Co.

3. MacroGenics (NASDAQ:MGNX)

This is a clinical-stage biotech company focused on monoclonal antibody-based therapeutics for the treatment of cancer and autoimmune diseases. To help fund the business, the company has struck a variety of strategic collaborations with companies like Les Laboratoires Servier, Gilead Sciences (GILD), Boehringer Ingelheim and Pfizer (PFE).

So far, MGNX has received $106 million in milestone payments. There are also $100 million in remaining potential payments.

The company plans to issue 4 million shares at a range of $14 to $16. The lead underwriters include BofA Merrill Lynch (BAC), Leerink Swann and Stifel.

 
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