Market volatility couldn’t hold back the IPO market last week, with six of seven offerings posting positive returns, including big performances by MacroGenics (MGNX, +63.1%) and LDR Holding (LDRH, +33.3%).
Only four deals are on deck this week, but all should do well … as long as the federal government gets its act together.
Here’s a quick look at all four:
Veeva Systems operates a cloud platform that helps life sciences companies with functions like customer relationship management, collaboration and content management. Some of the customers include Bayer (BAYRY), Eli Lilly (LLY), Gilead Sciences (GILD), Merck (MRK) and Novartis (NVS).
Unlike many other cloud operators, Veeva has been able to remain profitable as it cranks out growth. From fiscal 2011 to 2013, revenues soared from $29.1 million to $129.5 million while net income jumped from $3.9 million to $18.8 million.
Thus it’s no surprise that Wall Street is excited about the offering. Last week, the company increased the price range to $16 to $18, up from $12 to $14. In all, Veeva plans to issue 13 million shares on the New York Stock Exchange under the ticker “VEEV.” Lead underwriters include Morgan Stanley (MS) and Deutsche Bank (DB).
Plains GP Holdings, LP
Plains GP Holdings, LP is a master limited partnership that owns 100% of the incentive distribution rights to Plains All American Pipeline (PAA), which is focused on the transportation, storage, terminalling and marketing of crude oil and refined products. On a daily basis, the company delivers about 3.5 million barrels of crude oil and natural gas.
No doubt, PAA has been a cash machine. From 1998 to 2012, adjusted EBITDA exploded from $34 million to $2 billion. During this period, the cash distributions to PAGP have been healthy, with an annual growth rate at about 10%. When the MLP comes public, the annual dividend cash rate is expected to be 59.62 cents per unit.
Plains GP Holdings plans to issue 128 million shares on the New York Stock Exchange under the ticker “PAGP” at a range of $22 to $25. Lead underwriters include Barclays (BCS), Goldman Sachs (GS) and JPMorgan Chase (JPM).
Founded nearly a century ago, Springleaf Holdings is a major provider of installment loans to consumers, most of whom are non-prime borrowers.
Back in 2010, AIG (AIG) sold 80% of the company to Fortress Investment Group (FIG), a private equity firm. Since then, Springleaf has undergone major restructuring, including the winding down of its mortgage business.
The efforts have been paying off. From 2011 to 2012, earnings from the core business jumped from $47 million to $88 million.
Springleaf plans to issue 20 million shares on the NYSE under the ticker “LEAF” at a range of $15 to $17. Lead underwriters include Bank of America Merrill Lynch (BAC), Citigroup (C), Credit Suisse (CS), Allen & Company and Barclays.
Based in Germany, Voxeljet is a top operator in the fast-growing 3D printing market. The main focus is on high-speed, large-format machines for industrial and commercial customers.
From 2010 to 2012, revenues grew at a 35% compound rate, hitting $11.3 million. The company also posted a decent profit of $277,000 last year, thanks in part to customers like Daimler (DDAIF), BMW (BAMXY), Ford (F) and 3M (MMM).
Voxeljet plans to issue 6.5 million shares on the NYSE under the ticker “VJET” at a range of $13 to $15. Lead underwriters include Piper Jaffray (PJC) and Citi.
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.