Biotech IPOs Lead 10 Deals for the Week

The heavy activity continues in the wake of the Twitter IPO

     

Expect another busy week for IPOs — the calendar is showing 10 deals ready to come live for the next few days. Just don’t expect any blockbusters, as the slate is missing any well-known brands.

Still, investor appetite for IPOs has remained fairly robust, so maybe we’ll see a few surprises out of this week’s grouping, which includes some solid Internet companies from China and some hot biotech operators.

Here’s a quick look at each of this week’s upcoming IPOs:

500.com (WBAI)

500.com is a top Chinese online sports lottery service. The company’s brand, called 500wan, means “5 million,” which is a common amount for Chinese lottery’s major prizes.

During March to November 2012, WBAI voluntarily suspended its online service to obtain a license with the Chinese government because of a change in regulation. Yet during this period, the company continued to provide services on its mobile platform.

During the first nine months of this year, net revenues increased by 25% to $26.7 million and net income soared by 96.2% to $3.4 million.

500.com plans to issue 5.8 million shares on the New York Stock Exchange under the ticker “WBAI” at a price range of $9 to $11. The lead underwriter is Deutsche Bank (DB).

Evogene (EVGN)

Evogene uses plant genomics to create seeds that have higher crop performance, allowing farmers to better deal with drought, salinity and pests. The main categories include corn, soybean, wheat, rice and cotton.

The company has yet to commercialize its offerings but has been able to obtain various R&D grants. It also has been aggressive with its intellectual property strategy, filing more than 4,000 patents.

Oh, and there are also collaboration agreements with large operators like Monsanto (MON), Bayer, DuPont (DD), and Syngenta.

Back in 2007, Evogene listed on the Tel Aviv Stock Exchange, but it will be raising capital by listing on the NYSE under the ticker “EVGN,” selling 5 million shares at $17.16 each. The lead underwriters are Credit Suisse (CS) and Deutsche Bank.

GFI Software (GFIS)

GFI Software develops software to help small and midsize businesses to manage, monitor and secure their IT infrastructure and applications. During the past five years, the customer base expanded from 89,000 to more than 300,000.

As would be expected, then, the financials have been strong. For the first nine months of 2013, revenues grew to $118.5 million from $85.1 million in the year-ago period, while adjusted EBITDA increased from $50.7 million to $55.3 million.

A key part of GFI’s strategy is to offer a free trial version, and so far, it has proven effective in getting customers to buy.

GFI Software plans to issue 6.1 million shares on the NYSE under the ticker “GFIS” at a range of $12 to $14. Lead underwriters are JPMorgan (JPM), Credit Suisse and Jefferies.

Navigator Holdings (NVGS)

Navigator Holdings is an owner and operator of the world’s largest fleet of handysize liquefied gas carriers. A key part of the growth story is the U.S. shale oil and gas revolution, which requires sophisticated transportation to allow for exports.

For the first nine months of the year, Navigator reported revenues of $167 million, up from $106.5 million in the same period in 2012. During this time, EBITDA went from $45.8 million to $76.8 million.

Navigator plans to offer 11.3 million shares on the NYSE under the ticker “NVGS” at a range of $17 to $19. Lead underwriters are Jefferies and Morgan Stanley (MS).

Oxford Immunotec Global (OXFD)

Oxford Immunotec is a commercial-stage diagnostics company that focuses on immunology tests. The core technology — called T-SPOT — analyzes T-cells, which can help control infectious diseases, cancers and autoimmune diseases.

 
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