8 IPOs on Deck This Week

Among them, it looks like WorkDay is a red-hot cloud deal

   

It’s going to be a busy week for IPOs, with eight deals planned. Yet the market has experienced some turbulence recently. After all, companies like Dave & Busters have had to postpone their offerings.

Despite this, some of the deals should do quite well this week. Here’s a look:

retail sector shopper crossing 630 200x200 8 IPOs on Deck This Week
Retailers, Beware the Tempting IPO

Workday: It develops cloud-based software for enterprise resource planning (ERP), which helps companies manage their HR, inventory and financials.

Workday’s growth rate has been substantial. From fiscal 2011 to 2012, revenues have soared from $25.2 million to $134.4 million. The company now boasts more than 340 customers, including biggies like Aviva, AIG (NYSE:AIG) and Kimberly-Clark (NYSE:KMB).

Of course, investors have been bullish on cloud deals. Just some of the winners include ServiceNow (NYSE:NOW), Eloqua (NASDAQ:ELOQ) and ExactTarget (NYSE:ET).

In fact, Workday upped its price range on its IPO today to a range of $24 to $26, up from $21 to $24. The company plans to issue 22.75 million shares. The lead underwriters on the deal include Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS).

Realogy: This is one of the largest players in the U.S. real estate market. Some of its brands include Century 21, Coldwell Banker, ERA, Sotheby’s International Realty and Better Homes and Gardens Real Estate. All of these operate on the franchise model, which means Realogy has a fairly low-cost structure.

And yes, it looks like the real estate market is in the beginning stages of a recovery. In the second quarter, Realogy saw an 11% increase in revenues to $1.3 billion.

The company plans to issue 40 million shares at a range of $23 to $27. The lead underwriters include Goldman Sachs, J.P. Morgan (NYSE:JPM), Barclays (NYSE:BCS) and Credit Suisse (NYSE:CS).

Amira Nature Foods: It’s a leading producer of packaged Indian specialty rice. For the most part, it sells its products in emerging markets and has customers like Bharti Wal-Mart (NYSE:WMT), Big Bazaar, Metro Cash & Carry, Star Bazaar (Tesco in India), Carrefour and Costco (NASDAQ:COST).

From fiscal 2010 to 2012, revenues went from $201.7 million to $329 million. EBITDA came to $40 million last year.

So far this year, IPO investors have had a strong appetite for health food companies. For example, the shares of Annie’s (NYSE:BNNY) have gained 140% since its IPO in March, and the return for Natural Grocers (NYSE:NGVC) is 60% (the offering came in July).

Amira plans to issue 9 million shares at a range of $13 to $15. The lead underwriters include UBS Investment Bank (NYSE:UBS) and Deutsche Bank (NYSE:DB).

Here are the other IPOs planned for the week:

Diamondback Energy: The company is an independent oil and natural gas operator, which is focused on the Permian Basin in West Texas. But with the recent fall in oil prices, the deal could have difficulty getting traction.

Diamondback plans to issue 12.5 million shares at a price of $17 to $19. The lead underwriter is Credit Suisse.

Ambarella: It develops semiconductors for processing high-definition video. For the past year, revenues have come to about $107 million.

The company plans to issue 6 million shares at a range of $9 to $11. The lead underwriters include Morgan Stanley and Deutsche Bank.

Intercept Pharmaceuticals: This is a biotech company that’s developing a drug to treat biliary cirrhosis, which is a chronic autoimmune liver disease. The drug is still in clinical trials.

The company plans to issue 4.3 million shares at a range of $13 to $15. The lead underwriter is BofA Merrill Lynch (NYSE:BAC).

KYTHERA Biopharmaceuticals: This is a clinical-stage biotech company that has a drug that rids a person’s “double chin” (known as submental fat).

The company plans to issue 4 million shares at a range of $14 to $16. The lead underwriters include JP Morgan and Goldman Sachs.

Shutterstock: This is a site for royalty-free images and videos. From 2010 to 2011, revenues have gone from $83 million to $120.3 million. EBITDA came to $26.5 million last year.

The company plans to issue 4.5 million shares at a range of $13 to $15. The lead underwriters include Morgan Stanley, Deutsche Bank and Jefferies (NYSE:JEF).

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.


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