7 New Stocks to Watch: JD.com to Test the IPO Market

JD.com IPO could foreshadow the Alibaba IPO performance

     

With the selloff in tech stocks during the past couple months, the IPO market has certainly felt the impact. But last week, there were some signs that investors were getting more interested in deals. Just look at Zendesk (ZEN), which is a cloud provider of customer support tools. On its debut, the stock soared nearly 49%.

But as for this week, the IPO market will get a much bigger test: The offering of JD.com, which is China’s second largest ecommerce player. After all, the company is expected to raise more than $1.6 billion, and the market cap should exceed $22 billion. And yes, the deal will provide some clues about the appetite for upcoming Alibaba transaction.

So what about the rest of the IPOs for this week? Actually, it will be fairly busy, with seven new stocks on tap:

New Stocks to Watch: 21st Century Oncology (ICC)

Expected Offering Date: Wednesday

Founded in 1983, 21st Century Oncology operates a physician-led network that provides integrated cancer care. Treatments focus on fields like radiation oncology; medical oncology; breast, gynecological and general surgery; urology and primary care. There are also approximately 376 locations, including 185 radiation therapy centers.

Last year, pro forma revenues came to $813.8 million and adjusted EBITDA was $123.8 million. The company is actually 3.3 times larger than its nearest rival, in terms of average treatments per day.

21st Century Oncology plans to offer 13.3 million shares at a range of $14 to $16 and the lead underwriters include Morgan Stanley (MS), JP Morgan (JPM) and Wells Fargo Securities (WFC).

New Stocks to Watch: Agile Therapeutics (AGRX)

Expected Offering Date: Thursday

Agile Therapeutics is a biotech company focused on new prescription contraceptive products. The lead candidate is TwirlaTM, which is a once-per-week patch in Phase 3 trials. If the drug gets approval — which could happen by the end of 2015 — then the company will sell it through its direct sales force.

The U.S. contraceptive drug market is certainly large, with sales of $5.6 billion in 2013. As for TwirlaTM, the key is that it has a low dose of ethinyl estradiol, or EE, a synthetic estrogen that can cause adverse effects. If anything could hold up the drug, that would be it.

Agile plans to issue 4.6 million shares at a range of $12 to $14. The lead underwriters include RBC Capital Markets and William Blair.

New Stocks to Watch: First Foundation (FFWM)

Expected Offering Date: Wednesday

First Foundation is a California-based wealth management firm, with a focus on clients that own multifamily residential and commercial real estate. As of the first quarter, there were $2.8 billion in asset under management.

From 2011 to 2013, net income increased from $20.1 million to $35.7 million. Interestingly enough, the low interest rate environment has not been a big issue for the firm. About 36% of revenues come from non-interest fees.

First Foundation expects to issue 2.2 million shares at a range of $21 to $24. The lead underwriters include Sandler O’Neill and Keefe Bruyette Woods.

 
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