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Tech, Real Estate Top This Week’s 7 IPOs

A homebuilder, apartment REIT and cloud operator are among this week's deals


Wall Street keeps churning out the new deals, and investors keep shrugging, as evidenced by last week’s slate of 10 IPOs that finished with mixed results:

Company Ticker Offering Price Return
TriState Capital TSC $11.50 +17%
PennyMac PFSI $18.00 +11%
Quintiles Q $40.00 +6%
Receptos RCPT $14.00 +4%
Cyan CYNI $11.00 +2%
First NBC Bank NCBC $24.00 +1%
Armada Hoffler AHH $11.50 +1%
American Residential ARPI $21.00 0%
Emerge Energy EMES $17.00 -2%
BioAmber BIOA $10.00 -16%
Average +3%

Nonetheless, company execs and VCs still need to get theirs, so we’re not seeing a slowdown in activity. This week features seven deals on the docket … and we’re taking a quick look at each:

Ambit Biosciences

Ambit Biosciences (NASDAQ:AMBI) is a biotech company that focuses on treatments that inhibit kinases, which are drivers for diseases such as cancer. Three drugs are in development, with the lead one being quizartinib — a Phase 2B trial treatment for acute myeloid leukemia.

However, AMBI’s collaboration agreement with Astellas Pharma (OTC:ALPMY) is set to expire in September, and if it is not replaced, it could mean a delay in Phase 3 trials for quizartinib. Keep in mind that AMBI generated $23.8 million in collaboration revenues last year.

As for the IPO, Ambit expects to issue 4.6 million shares at a range of $13 to $15. Lead underwriters include Citi (NYSE:C) and Leerink Swann.


Marketo (NASDAQ:MKTO) operates a cloud platform that helps companies manage their marketing efforts, such as with social media, customer tracking and revenue analytics. MKTO has more than 2,300 customers, which range from small businesses to Fortune 500 companies.

From 2010 to 2012, revenues spiked from $14 million to $58.4 million, but losses also grew, with Marketo bleeding $11.8 million in 2010 and $34.4 million in 2012.

Marketo plans to issue 6.1 million shares at a range of $11 to $13. Lead underwriters include Goldman Sachs (NYSE:GS) and Credit Suisse (NYSE:CS).

Tableau Software

Tableau Software (NYSE:DATA) develops software that helps companies interpret data, such as through visualization. Some of the use cases involve assessing quality and safety, increasing sales and improving customer service.

Tableau boasts more than 10,900 customers spanning 100 countries, with clients including Deere (NYSE:DE), Sears Holdings (NASDAQ:SHLD) and Verizon (NYSE:VZ).

Growth has certainly been strong. During the past three years, revenues soared from $34.2 million to $127.7 million, and the company even posted a $1.4 million profit last year.

DATA plans to issue 7.2 million shares at a range of $23 to $26. Lead underwriters include Goldman Sachs, Morgan Stanley (NYSE:MS), Credit Suisse and JPMorgan (NYSE:JPM).

Tallgrass Energy Partners

Tallgrass Energy Partners (NYSE:TEP) provides natural gas transportation and storage services for customers in the Rocky Mountain and Midwest regions of the United States. TEP also recently shelled out $3.3 billion for the midstream energy assets of Kinder Morgan Energy Partners, LP (NYSE:KMP).

While TEP is a strong cash generator, the results have been volatile. From 2011 to 2012, for instance, adjusted EBITDA fell from $98.4 million to $76.4 million.

Tallgrass Energy plans to issue 13.1 million shares at a range of $21 to $23. Lead underwriters include Barclays (NYSE:BCS), Citi, BofA Merrill Lynch (NYSE:BAC) and Deutsche Bank (NYSE:DB).

William Lyon Homes

Founded more than 55 years ago, William Lyon Homes (NYSE:WLH) is one of the largest homebuilders in the western U.S., with main operations in California, Arizona, Nevada and Colorado.

The company owns or controls more than 13,200 lots, which is enough for a 12-year supply for construction. Its average selling price is currently about $275,000 per home.

Last year, WLH’s revenues came to $372.8 million, up from $226.8 million in 2011, helping the company flip from a $148 million loss to a $4.7 million profit.

William Lyon plans to issue 8.7 million shares at a range of $22 to $24. Lead underwriters include Credit Suisse, Citi and JPMorgan.

Trade Street Residential

Trade Street Residential (NASDAQ:TSRE) is a real estate investment trust that focuses on the ownership and management of 14 mid-rise apartment communities, primarily in the southeastern U.S. It currently has an overall occupancy rate of 93.9% and an average monthly effective rent per apartment of $817.

From 2011 to 2012, revenues improved by nearly 50% to $31.9 million, though its loss doubled to $16.2 million.

Trade Street plans to issue 6.3 million shares at a range of $11 to $13. The lead underwriter on the deal is Sandler O’Neill & Partners.


UBIC (NASDAQ:UBIC) is a provider of eDiscovery services for litigation, supporting the Japanese, Korean, Chinese and English languages. For the most part, UBIC focuses on legal matters that have global scope, such as patent cases, product liability and issues with the Foreign Corrupt Practices Act.

For the nine months ended Dec. 31, 2012, revenues fell by 6.4% year-over-year to $40.9 million, and net income plunged by 48.9% to $6.2 million. The main reason: UBIC saw a big reduction of manual review services, which is something more companies have brought in-house.

UBIC plans to issue 1.1 million shares at a range of $7.50 to $9.50. Lead underwriters include Maxim Group LLC and The Benchmark Company.

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.

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