Expect a Bustling Week for IPOs

Nine deals are on the calendar

   

Get a notepad ready, because this week is going to be a cluttered one on the IPO front.

While it’s been slim pickings for tech IPOs in 2013, we’ll see the year’s offerings double — from two to four. The two tech IPOs on this week’s calendar are Model N (NYSE:MODN), which provides revenue management for the technology and medical industries, and Marin Software (NYSE:MRIN), which helps to better manage online advertising campaigns.

For a closer look at those offerings, you can take a look at my breakdown from last week. Here, we’ll take a look at the seven non-tech IPOs set to hit the market this week:

Aviv REIT

Aviv REIT (NYSE:AVIV) — a major operator of long-term skilled nursing facilities — tried to go public back in 2009, but it pulled the deal amid the financial crisis. As we all know, real estate is in a much better place right now.

AVIV currently has a portfolio consisting of 258 properties across 29 states, with much of its growth coming through aggressive acquisitions. Revenues increased from $97 million in 2011 to $123.2 million last year, and funds from operations — a key cash flow metric for REITs — increased from $46.5 million to $55.4 million in this period.

The long-term prospects for Aviv look bright thanks to an aging population, as well as regulations that encourage demand for post-acute and long-term care services.

Aviv plans to issue 13.2 million shares at a range of $18 to $20. Lead underwriters include Morgan Stanley (NYSE:MS), BofA Merrill Lynch (NYSE:BAC) and Goldman Sachs (NYSE:GS).

Cancer Genetics

Cancer Genetics (NASDAQ:CGIX) is a biotech company that makes genomic tests. These help to target cancers that are tough to diagnose, such as those that are hematological, urogenital and HPV-associated.

To help things along, Cancer Genetics has forged agreements with Mayo Foundation for Medical Education and Research, Memorial Sloan-Kettering Cancer Center and the Cleveland Clinic. Still, CGIX generates a small amount of revenues; the company brought in just $4.3 million last year and suffered a net loss of $6.7 million.

Cancer Genetics plans to issue 1.7 million shares at a range of $10 to $12. The lead underwriter on the deal is Aegis Capital.

Enanta Pharmaceuticals

Biotech operator Enanta Pharmaceuticals (NASDAQ:ENTA) uses a chemistry-driven approach to create small molecules that attack hepatitis C. The disease is extremely tough to fight because of the many variations, butt Enanta has developed inhibitors that can be used in multiple combination therapies.

As a sign of the strong growth potential, the company has struck important deals with Abbott Laboratories (NYSE:ABT) and Novartis (NYSE:NVS). The addressable market is large, coming to about $3.5 billion per year.

Enanta expects to issue 4 million shares at a range of $14 to $16. The lead underwriters include JPMorgan (NYSE:JPM) and Credit Suisse (NYSE:CS).

Five Oaks Investment

Five Oaks Investment (NYSE:FOIC) is a mortgage REIT that has a diverse portfolio of agency and non-agency residential mortgage-backed securities.

The firm got its start about a year ago to capitalize on the changes in the market. Essentially, government-backed organizations should have less influence in the mortgage market, which in turn should mean nice opportunities for private operators like Five Oaks.

Five Oaks has about $97 million in assets, and from May 2012 to Dec. 31, the company generated profits of $4.8 million.

Five Oaks plans to issue 5.7 million shares at a price of $15. Lead underwriters include Barclays (NYSE:BCS), Credit Suisse, UBS Investment Bank (NYSE:UBS) and Keefe Bruyette Woods.

HF2 Financial Management

HF2 Financial Management (NASDAQ:HTWO) is a “blank check” company. This means there’s no operational business; instead, the company raises capital to pull off acquisitions.

HF2′s focus will be on the financial services industry. The chairman of the company, R. Bruce Cameron, is the CEO of investment bank Berkshire Capital, and he and his team have provided advisory service on more than 270 mergers.

HF2 plans to issue 15.3 million shares at $10 each. The lead underwriter is EarlyBird Capital.

Tetraphase Pharmaceuticals

Tetraphase Pharmaceuticals (NASDAQ:TTPH) is a clinical-stage biotech company that is developing next-generation antibiotics for life-threatening multi-drug-resistant infections. However, it will probably take a few years until the company’s drugs hit the market; so far, all of its revenues have been in the form of government grants.

Tetraphase plans to issue 6.8 million shares at $10 to $12. Lead underwriters include Barclays and BMO Capital Markets.

West Corporation

West Corporation (NASDAQ:WSTC) is a call center provider that went private back in 2006, with private equity sponsors including TH Lee and Quadrangle.

During the past decade, West has seen an annual growth rate for its revenues of 12%, though revenues only increased by 5.9% to $2.6 billion last year. However, adjusted EBITDA was healthy, coming to $713.1 million.

The company plans to issue 21.3 million shares at a range of $22 to $25. Lead underwriters include Goldman Sachs, Morgan Stanley, BofA Merrill Lynch and Barclays.

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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