Nine new stocks were expected to hit the markets last week, but only five ended up completing their offerings, and of those, just two posted positive first-day returns.
You can blame a whole lot of market volatility for that.
This week is a little more reserved, with only five new stocks coming live … and of them, most are small, and one (EndoStim, which you can read about here) is a holdover from last week. For now, let’s take a look at the newest offerings:
New Stocks to Watch: Anchor BanCorp Wisconsin (ABCW)
Expected Offering Date: TBD
Anchor BanCorp Wisconsin (ABCW) is a full-service bank that operates 54 branches in the greater Madison, Fox Valley and Milwaukee regions of Wisconsin. The firm has assets of $2.12 billion and equity of $211.5 million.
Back during the financial crisis, the bank took a Troubled Asset Relief Program loan of $184 million, but was unable to pay it back. So in 2013, the bank had to file for Chapter 11 bankruptcy protection and put together a reorganization plan.
For now, it looks like Anchor BanCorp is back on track; during the first half of this year, net interest income rose by 28% to $36 million.
Anchor BanCorp Wisconsin expects to issue 372,000 shares on the Nasdaq under the ticker “ABCW” at a range of $25 to $27. Lead underwriters are Sandler O’Neill and Baird.
New Stocks to Watch: Fifth Street Asset Management (FSAM)
Expected Offering Date: Wednesday
Fifth Street Asset Management (FSAM) is an alternative asset manager with $5.6 billion in assets under management whose primary focus is financing for small- and mid-sized companies (revenues between $25 million to $500 million).
Growth in AUM has been strong, coming to an annual compounded growth rate of 52.7% since 2010. The financials have also been robust. Last year, revenues grew 34.7% year-over-year to $73.6 million, and net income improved 24.1% to $39.8 million.
Fifth Street Asset Management intends to issue 8 million shares on the Nasdaq under the ticker “FSAM” at a range of $24 to $26. Lead underwriters are Morgan Stanley (MS), JPMorgan Chase (JPM), Goldman Sachs (GS), Royal Bank of Canada Capital Markets (RY) and Credit Suisse (CS).
New Stocks to Watch: Proteon Therapeutics (PRTO)
Expected Offering Date: Wednesday
Proteon Therapeutics’ (PRTO) lead product, PRT-201, is focused on helping to reduce vascular access failure in patients with chronic kidney disease who are involved in hemodialysis. The drug recently completed Phase 2 trials and also was able to raise about $25 million in a private placement.
Proteon says that if PRT-201 ultimately proves effective, the company expects the drug to hit the market in 2017.
Proteon Therapeutics plans to sell 4.7 million shares on the Nasdaq under the ticker “PRTO” at a range of $12 to $14. The lead underwriters include Stifel and JMP Securities.
New Stocks to Watch: Electronic Cigarettes International Group (ECIG)
Expected Offering Date: Friday
Electronic Cigarettes International Group is an independent marketer and distributor of electronic cigarettes that’s gunning after a large potential global market of 1.3 billion smokers.
As for Electronic Cigarettes International Group, the company has been aggressive with acquisitions. Some of the brands it has picked up include Ten Motives, Must Have, FIN, Vapestick, Victory, Victoria and El Rey. In all, these brands generated $48.5 million in revenues and a net loss of $10.5 million during the first half of this year.
Electronic Cigarettes International Group plans to issue 33.3 million shares on the Nasdaq under the ticker “ECIG” $4.50. Keep in mind that the company is currently traded on the OTC Bulletin Board (the symbol is ECIG). The lead underwriters include Wells Fargo (WFC) and Canaccord Genuity.
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.