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10 New Stocks to Watch — IPOs Get Ready for the August Break

The IPO markets remains active, but investors are showing fatigue


Last week was the most active week for IPOs since 2007, with 15 offerings hitting the market (according to Renaissance Capital). Yet the overall performance was mixed. While some IPOs had standout performances — like Mobileye (MBLY) and HealthEquity (HQY) — there were also plenty of duds, especially with small biotech deals.

As for the this week, the activity will remain healthy as 10 deals are planned to come to market. Of these, four are holdovers from last week, which include Auris Medical (EARS), Tobira Therapeutics (TBRA),
Microlin Bio (MCLB) and Zosano Pharma (ZSAN).

So let’s take a look:

New Stocks to Watch: Green Bancorp (GNBC)

Expected Offering Date: Friday

Green Bancorp is a Texas-based bank, which is headquartered in Houston. The firm operates 12 full-service branches and offers commercial/private banking services. There are roughly $1.8 billion in total assets and $1.4 billion in loans.

The CEO of the bank, Manny Mehos, has a strong background. In 1986, he founded a small bank (Coastal Bancorp), with only $11 billion in assets. By 2004, he built it to 43 branches and $2.7 billion in assets.

As for Green Bancorp, Mehos has also pulled off strong growth. From 2009 to 2014, the compound annual growth rate for loans came to about 37%. During this period, the net income went from a loss of $3.3 million to a gain of $12.6 million.

Green Bancorp expects to issue 4.7 million shares at a range of $15 to $17. The lead underwriters include Sandler O’Neill and Jefferies.

New Stocks to Watch: Höegh LNG Partners (HMLP)

Expected Offering Date: Wednesday

Höegh LNG Holdings, which is a top LNG service provider, created the Hoeigh LNG limited partnership to acquire and operate floating storage and regasification units and LNG carriers. The initial assets will include three ships, and they all have long-term supply contracts.

In the first quarter, revenues hit $29.1 million and EBITDA was $8.4 million.

Höegh LNG expects to offer 9.6 million units at a range of $19 to $21. The lead underwriters Citi (C), Bank of America Merrill Lynch (BAC), Morgan Stanley (MS), Barclays (BCS) and UBS Investment Bank (UBS).

New Stocks to Watch: iDreamSky Technology (DSKY)

Expected Offering Date: Thursday

iDreamSky Technology is the largest independent mobile gaming publisher in China, in terms of active users (roughly 98.3 million). The portfolio consists of 40 casual, mid- and hardcore titles. The company also has an aggressive partnership strategy for distribution. Some of the partners include Tencent (TCEHY) and Qihoo (QIHU).

Last year, revenues came to RMB 246.6 million ($40.7 million), up from RMB 19.4 million. Although, the company is still losing money. In 2013, the net loss was $46 million.

iDreamSky Technology intends to sell 7.7 million shares at a range of $12 to $14. The lead underwriters include Credit Suisse (CS), JPMorgan Chase (JPM) and Stifel. What’s more, Tencent, Cheetah Mobile (CMCM) and LINE plan to invest up to $26 million in the offering.

New Stocks to Watch: Independence Contract Drilling (ICD)

Expected Offering Date: Friday

Independence Contract Drilling is a land-based drilling services operator for oil and natural gas producers that are focused on unconventional plays in the U.S. The company has developed a proprietary technology, called ShaleDriller, which is designed for tough environments.

In the first quarter, revenues were $13.5 million, up from $8.3 million in 2013. During this period, adjusted EBITDA went from $683,000 to $3.3 million.

Independence Contract Drilling plans to sell 10 million shares at a range of $14 to $16. The lead underwriters include Morgan Stanley, RBC Capital Markets and Tudor, Pickering, Holt.

New Stocks to Watch: T2 Biosystems (TTOO)

Expected Offering Date: Thursday

T2 Biosystems develops vitro diagnostics to help target treatments earlier, such as rapid detection of pathogens. The main platform, called T2MR, will first focus on sepsis and hemostasis.

Keep in mind that current solutions provide results that can be delayed up to 72 hours. But with T2MR, the clinical tests indicate a timeline of about 4.2 hours. As a result, the cost savings can be about $30,000 per patient because treatments are likely to be more effective.

T2 Biosystems plans to offer 4 million shares at a price range of $15 to $17. The lead underwriters include Goldman Sachs (GS) and Morgan Stanley.

New Stocks to Watch: Ryerson Holding (RYI)

Expected Offering Date: Thursday

Ryerson is one of North America’s largest processors and distributors of metals. It has more than 70,000 offerings, including stainless steel, carbon steel, nickel and aluminum. For a majority of the customers, the company provides customization, with 96 facilities in the U.S., China and Brazil.

For the first quarter, the company reported revenues of $874.4 million and adjusted EBITDA of $53.2 million. There are about 40,000 customers.

Ryerson plans to sell 11 million shares at range of $17 to $20. The lead underwriters include Bank of America Merrill Lynch, Deutsche Bank Securities (DB), BMO Capital Markets, J.P. Morgan and Jefferies.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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