After a sparse week that saw just two deals — though good ones, with Bright Horizons (NYSE:BFAM) gaining 29% and LipoScience (NASDAQ:LPDX) climbing 16% — we’re set to double that number in the next few days, with four deals set to hit the market. Here’s a look at each:
Zoetis
Zoetis (NYSE:ZTS) is a spinoff of Pfizer’s (NYSE:PFE) animal health business, and is set to be the largest deal since Facebook (NASDAQ:FB) went public. Zoetis plans to issue 86.1 million shares at a range of $22 to $25, potentially raising $2.2 billion. (Facebook’s deal raised $16 billion).
Zoetis is the No. 1 operator in the industry, selling more than 300 products across 120 countries. For the first nine months of 2012, revenues increased by only 1.7% to $3.16 billion, but operating income spiked by 75% to $636 million.
Spinoffs certainly can turn into big winners. For instance, Bristol-Myers Squibb (NYSE:BMY) spun off its Mead Johnson Nutrition (NYSE:MJN) division back in 2009, and MJN shares went on to return about 60%.
The lead underwriters for the ZTS deal include JPMorgan Chase (NYSE:JPM), Bank of America Merrill Lynch (NYSE:BAC) and Morgan Stanley (NYSE:MS).
TRI Pointe Homes
TRI Pointe Homes (NYSE:TPH) is a single-family home developer that focuses on planned communities in California.
The company got its start back in April 2009, in the depths of the real estate depression. The timing could not have been better. TRI was able to build a next-generation platform with a low-overhead model and focused on markets with long-term growth potential. In late 2010, TRI got an equity commitment of $150 million from Starwood Capital, which is controlled by real estate legend Barry Sternlicht.
Revenues have soared from $4.1 million to $26.5 million (the year ended Sept. 30, 2012) in the past two years. However, the company continues to lose money, with losses standing at $4.6 million for the first nine months of 2012.
The company plans to issue 11.7 million shares at a range of $14 to $16. Lead underwriters include Citigroup (NYSE:C), Deutsche Bank (NYSE:DB) and FBR Capital Markets.
KaloBios Pharmaceuticals
KaloBios Pharmaceuticals (NASDAQ:KBIO) develops antibodies that help to fight respiratory diseases and cancers, with a focus on the improved targeting of treatments. KBIO’s drugs all are in trial stages, though it does have a partnership with French pharma giant Sanofi (NYSE:SNY).
KaloBios plans to issue 3.9 million shares at a range of $12 to $14. The lead underwriter is Leerink Swann.
Stemline Therapeutics
Stemline Therapeutics (NASDAQ:STML) is another biotech company with drugs in clinical trials. STML’s treatments focus on targeting cancer stem cells — a highly competitive market. Just some of Stemline’s rivals include Boston Biomedical, Eclipse Therapeutics, OncoMed Pharmaceuticals and Verastem (NASDAQ:VSTM).
Stemline plans to issue 2.3 million shares at a range of $10 to $12. The lead underwriter is Aegis Capital.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.
