Weekly IPO Outlook: Taylor Morrison Among 7 Offerings on Deck

We'll also see IPOs in biotechnology and the cloud

   

The IPO market has been fairly light for weeks, with the past month seeing an average of less than three IPOs per week. Lucky for those interested in new offerings, activity is about to rev up again, with seven new companies scheduled to hit the market by Friday.

Let’s take a look at each:

Taylor Morrison Home

gold mine shaft 630 200x200 Weekly IPO Outlook: Taylor Morrison Among 7 Offerings on Deck
Gold Miners Are in Deep Schist

Taylor Morrison Home (NYSE:TMHC) — whose key markets include California, Florida, Phoneix and parts of Canada — will be the sixth-largest public homebuilder in North America once it hits the market.

Unsurprisingly, Taylor has picked up tremendous momentum amid the housing rebound. In 2012, revenues soared 90% year-over-year to $1.44 billion, and earnings climbed from $25.6 million to $430.8 million (though keep in mind that outsized gain was the result of a massive tax benefit that came from a string of losses from the real estate depression). The company also has a backlog of $1.4 billion.

Taylor Morrison plans to issue 23.8 million shares at a range of $20 to $22. Lead underwriters include Credit Suisse (NYSE:CS) and Citi (NYSE:C).

Chimerix

Biotech firm Chimerix (NASDAQ:CMRX) uses lipid technology to create compounds, one of which is focused on treating infections from stem cell transplants, and another is meant to treat HIV.

The company has entered a collaboration and licensing agreement with Merck (NYSE:MRK), which has made a $17.5 million up-front payment. However, Chimerix will not have any drugs on the market until at least the next several years. In the meantime, the company likely will continue to generate substantial losses. The accumulated deficit is more than $100 million.

Chimerix plans to issue 6.1 million shares at a range of $13 to $15. Lead underwriters include Morgan Stanley (NYSE:MS) and Cowen & Company.

Evertec

Evertec (NYSE:EVTC) operates a full-service transaction processing service in Latin America and the Caribbean. The platform processes 1.8 billion transactions per year and has a network of more than 4,100 ATMs and 104,000 point-of-sale terminals.

Growth has been steady in the past few years. Revenues grew from $276.3 million to $341.7 million from 2009 to 2012, and adjusted EBITDA has improved from $117.6 million in 2009 to $169.6 million last year.

Evertec plans to issue 21.1 million shares at a range of $18 to $20. Lead underwriters include Goldman Sachs (NYSE:GS) and JPMorgan (NYSE:JPM).

Harvard Apparatus Regenerative Technology

Harvard Apparatus Regenerative Technology (NASDAQ:HART) is a clinical-stage regenerative medicine company whose primary product is meant to help surgeons create a replacement trachea. The company seems fairly confident it will get approval, estimating that the EU will give a green light by the end of 2015, and the FDA by 2016.

HART also believes its core technology can be used to create other organs, such as lungs, heart valves and the gastrointestinal tract

Harvard Apparatus plans to issue 1.7 million shares at a range of $10 to $12. Lead underwriters include Summer Street Research Partners and Maxim Group.

KNOT Offshore Partners LP

KNOT Offshore Partners LP (NYSE:KNOP) operates a fleet of shuttle tankers that are under long-term charters (defined as five years or more). Customers include major oil and gas companies that are engaged in offshore production, such as BG Group (PINK:BRGYY), Statoil (NYSE:STO) and Transpetro.

KNOT has been growing at a good clip, with 2012 revenues coming in 50% better YOY to $65.7 million, and the company swinging from a $16.3 million loss in 2011 to a $4.1 million profit last year.

That momentum should continue for the long-term. Shuttle tankers are becoming a preferred option for deepwater production because of the low costs and the ability to deal with harsh environments.

KNOT Offshore plans to issue 7.5 million shares at a range of $19 to $21. Lead underwriters include BofA Merrill Lynch (NYSE:BAC), Citi and Barclays (NYSE:BCS).

Omthera Pharmaceuticals

Omthera Pharmaceuticals (NASDAQ:OMTH) is a biotech company with several therapies, such as for treating abnormalities in blood lips and cardiovascular disease. One of its drugs, Epanova, is in late-stage trials and could get FDA approval within the next few months. If so, OMTH could be poised to generate substantial revenues.

Omthera plans to issue 5.8 million shares at a range of $12 to $14. Lead underwriters include BofA Merrill Lynch, Barclays and Leerink Swann.

Rally Software

Rally Software (NYSE:RALY) operates a cloud platform that helps improve coding software. Demand for this type of service has grown along with adoption of smartphones, tablets and social networking.

Rally’s credentials so far are impressive. The company has more than 1,000 customers, including 36 Fortune 100 companies, and for fiscal 2012, RALY’s revenues climbed by 39% to $41.3 million. However, RALY continues to lose money, with last year’s net loss worsening by 17% to $11.6 million.

Rally Software plans to issue 5.8 million shares at a range of $11 to $13. Lead underwriters include Deutsche Bank (NYSE:DB) and Piper Jaffray (NYSE:PJC).

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.


Article printed from InvestorPlace Media, http://investorplace.com/ipo-playbook/weekly-ipo-outlook-taylor-morrison-among-7-offerings-on-deck/.

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