Bank, Biotech Company Coming to Market

There are only two / upcoming IPOs for / this fairly light week

   

Last week was fairly light for the IPO market, but the one deal on the men — Pinnacle Foods (NYSE:PF) — turned out to be a nice one. The company raised $580 million and the stock rose over 11% on its debut.

This week, the calendar is once again pretty empty, with only two deals on deck. One is the Independent Bank Group (NASDAQ:IBTX), which operates 30 branches in the Dallas-Fort Worth area. The firm has roughly $1.4 billion in assets and stockholders’ equity of $124.5 million. It also has been able to generate a nice stream of profits, which grew from $7.7 million in 2009 to $17.4 million in 2012.

IBTX plans to issue 3.2 million shares at $24 to $26. The lead underwriters include Sandler O’Neill, Evercore Partners (NYSE:EVR) and Keefe, Bruyette & Woods.

The other IPO that is expected to hit the market is Harvard Apparatus Regenerative Technology (NASDAQ:HART) — a clinical-stage regenerative medicine company.

The company’s first product actually allows surgeons to create a replacement trachea. So far, the device has been used in six successful transplants. It could be extremely helpful in treating various trachea cancers since it is hard to find donors for this type of organ and there is often lifelong rejection of drug therapies. Its device requires no chemotherapy or radiation treatment.

The company also appears to have confidence in getting approval to commercialize its device. The estimate is that EU approval will come at the end of 2015 and FDA approval will come at the end of 2016. HART believes it will be able to use the “fast track” approach, which is available for products that treat rare diseases. See, the incidence of trachea cancer is only 2.6 per one million of population. Sadly, the median survival is only about 10 months, though.

HART is also working on using its technology to create other organs, such as lungs, heart valves and the gastrointestinal tract. No doubt, these could be used in huge markets across the globe.

As for the IPO, HART plans to issue 1.7 million shares at a range of $10 to $12.  The lead underwriter include Summer Street Research Partners and Maxim Group LLC.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.”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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