New Stocks: Cloud Deals Lead This Week’s Slate of IPOs

Cloud deals and biotech offerings are still in-demand

     

Last Friday’s IPO of Castlight (CSLT) — which soared 148% — is further evidence that the demand for cloud deals is red-hot. So yes, Wall Street bankers are getting busy with new stocks about to hit the markets. This week, there are four cloud operators that plan to go public. While none will likely be as strong as Castlight, the action should still be robust.

In fact, the week will be fairly busy, with a total of 9 new stocks preparing to go public this week. Besides the cloud offerings, there are also several biotech companies looking to get deals done.

So let’s take a look at each of the new stocks to watch for this week:

New Stocks to Watch — A10 Networks (ATEN)

A10 Networks is a provider of advanced application networking systems. The technology relies on optimized 64-bit processors and proprietary memory architectures. As a result, A10 believes that its approach results in two to five times more web transactions per unit of computing and memory resources, power or rack space.

From 2010 to 2013, revenues grew from $55.3 million to $141.7 million. However, the company still posted a net loss of $29.1 million last year. The company sells its products primarily to service providers and enterprises that rely on data centers.

A10 Networks plans to issue 12.5 million shares at a range of $13 to $15. The lead underwriters include Morgan Stanley (MS), BofA Merrill Lynch (BAC) and J.P. Morgan (JPM).

Note: I interviewed the company’s CEO and co-founder back in December 2011.

New Stocks to Watch — Akebia Therapeutics (AKBA)

Akebia is a biotech company that is focused on developing proprietary therapeutics based on hypoxia inducible factor, or HIF, biology. This is the main regulator of production of red blood cells.

The lead candidate is AKB-6548, which is a once-daily oral therapy that is targeted for kidney disease. The drug has successfully completed a Phase 2 proof-of-concept study.

The company certainly has a top-notch team. For example, the CEO, John Butlerm, was the former president of Genzyme’s renal division. He grew the business to over $1 billion in annual revenues.

Akebia Therapeutics intends to sell 4.9 million shares at a range of $14 to $17. The lead underwriters include Morgan Stanley, Credit Suisse (CS) and UBS Investment Bank (UBS)

New Stocks to Watch — Amber Road (AMBR)

Amber Road is a cloud-based company that helps companies manage global trade. Last year, the platform processed more than 600 million transactions and supply chain messages. The software deals with the complexities of regulations, contracts, cost optimizations and logistics.

From 2011 to 2013, revenues have gone from $37.6 million to $52.5 million. As for the bottom line, the company posted a net loss of $14.4 million, last year. Some of Amber’s clients include General Electric (GE), Monsanto (MON) and Walmart (WMT).

The company plans to issue 6.5 million shares at a range of $10.50 to $12.50, and the lead underwater is Stifel.

New Stocks to Watch — Borderfree (BRDR)

Borderfree operates an ecommerce platform for cross-border transactions. For the most part, the focus is on retailers who want to expand their market potential. The Borderfree platform helps with such things as site localization, multi-currency pricing, fraud management, customs and logistics.

From 2011 to 2013, revenues have climbed from $37 million to $110 million. The company posted a small loss of $700,000, last year, but it has some powerful customers that could bring it to profitability. Some of Borderfree’s customers include Macy’s (M), Neiman Marcus and Under Armour (UA).

The company expects to sell 5 million shares at a range of $14 to $16. The lead underwriters include Credit Suisse and RBC Capital Markets.

 
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Article printed from InvestorPlace Media, http://investorplace.com/ipo-playbook/new-stocks-to-watch-2/.

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