The market volatility certainly has taken a toll, and if Monday’s trading is any indication, the tough times probably aren’t over. That means it’s a pretty good bet that some of this week’s nine planned deals won’t make it to pricing.
So let’s take a look at each:
CDW (CDW) is a distributor and integrator of information technology solutions, which includes more than 100,000 products, 1,000 brands and 250,000 customers.
The company went private in 2007 and the private equity sponsors, which included Madison Dearborn Partners and Providence Equity, pulled off a restructuring. The company has shown good results, increasing sales from $9.6 billion to $10.128 billion and improving adjusted EBITDA to $766.6 million, up almost $50 million in two years. Major trends like cloud computing and mobility have really benefited the company.
Esperion Therapeutics (ESPR) is a biotech operator that is focused on treatments for patients with elevated levels of low-density lipoprotein cholesterol and other cardiometabolic risk factors. The lead candidate is ETC-1002, which has shown effectiveness in Phase 2a trials and does not have the typical side effects of muscle pain and weakness.
The company’s founder and chief scientific officer is Roger Newton, who co-discovered Lipitor — the best-selling drug in the history of the pharma industry.
Based in China, GDC Technology (GDCT) sells digital cinema servers, which meet the demanding performance, security and reliability requirements of Hollywood studios. The company is ranked No. 2 in the world in terms of market share.
The company has experienced strong growth in the last couple of years. From 2010 to 2012, revenues rose from $72.7 million to $116.6 million and earnings climbed from $19.9 million to $27.7 million.
HD Supply (HDS) is a top construction distribution operator, which has more than a million stock-keeping units. Some of the products include appliances, cabinets, window coverings, hydrants, power equipment and meters. The company also provides a wide array of services, such as fabrication, kitting, jobsite delivery, managed inventory and Internet tools.
The rebound in the real estate market has boosted the company’s fortunes. During fiscal year 2013, revenues improved 14% to $8 billion, and adjusted EBITDA climbed by an impressive 34% to $683 million. Although, with the recent bump-up interest rates, there could be a slowdown on the horizon.
The company plans to issue 53.2 million shares at a range of $22 to $25. The lead underwriters include Bank of America Merrill Lynch (BAC), Barclays, JPMorgan and Credit Suisse.
Luxoft (LXFT) provides outsourced software development services. The focus is on six main verticals: financial services, travel and aviation, technology, telecom, energy, and automotive and transport. As for projects, common ones include mobile, Big Data and user interface development. Luxoft’s development centers are based in Russia, Ukraine, Romania and Poland, where there are large pools of educated IT professionals
From fiscal 2011 to 2013, revenues grew from $198.4 million to $314.6 million, while net income rose from $25.9 million to $37.5 million.
The company plans to issue 4.1 million shares at a range of $16 to $18. The lead underwriters include UBS Investment Bank (UBS), Credit Suisse, JPMorgan, VTB Capital and Cowen and Company.
Nanostring Technologies (NSTG) develops next-generation machines that help analyze genomic information. The main product, called the nCounter Analysis System, can profile hundreds of molecules simultaneously by using innovative barcoding technology. This greatly helps to streamline the drug discovery process. And now the company is developing machines that focus on certain disease categories — for example, Prosigna helps analyze breast cancer genes.
From 2010 to 2012, revenues grew from $11.7 million to $23 million. However, the company has experienced a string of net losses which came to $17.7 million last year.
Nanostring plans to issue 5.4 million shares at a range of $13 to $15. The lead underwriters include JPMorgan and Morgan Stanley (MS).
Noodles & Company
Noodles & Company (NDLS) is a fast-casual restaurant chain with a unique concept — its cuisines span 25 diverse offerings of Asian, Mediterranean and American dishes. The menu is also value priced at roughly $8 per person.
The concept has certainly gotten lots of traction. From 2008 to 2012, revenues rose from $170 million to $300 million and income from operations went from $2 million to $16 million. Last year, comparable sales growth was at 5.4%.
The management team has experience with growing restaurant chains. CEO Kevin Reddy and President and COO Keith Kinsey served as executives at Chipotle (CMG) from 2000 to 2005.
The company plans to issue 5.4 million shares at a range of $13 to $15. The lead underwriters include Morgan Stanley and UBS Investment Bank.
Regado Biosciences develops controllable antithrombotic drug systems for acute and sub-acute cardiovascular indications. Its lead candidate, Factor IXa, is designed for patients with a variety of acute coronary syndromes. It reportedly can get results within five minutes of injection and also greatly reduces the chances of major bleeding events. Right now, the drug is going to Phase 3 trials.
Regado was on last week’s list, but never made it to an actual offering. The company plans to issue 5 million shares on the Nasdaq at a range of $14 to $16. Lead underwriters include Cowen & Company and BMO Capital Markets.
Founded in 2005, Tremor Video (NSTG) operates a video ad network called VideoHub. It allows customers to serve ads across multiple platforms like desktops, smartphones, tablets and connected TVs. A key to the company’s success is its business model: It prices ads based on cost per engagement, or CPE, approach. In other words, this essentially means the people are actually looking at the ads.
Last year, revenues increased 16% but the company did continue to lose money. However, the net loss declined by 21% last year to $16.6 million.
Tremor plans to issue 5.4 million shares at a range of $13 to $15. The lead underwriters include JPMorgan and Morgan Stanley.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All 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.