5 New Stocks on Tap – And No Biotechs

Last week was not so good for new stocks. Eight deals were on tap but only six could get done. In fact, two of the offerings posted negative returns and another broke even.

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As has been the case for the past few months, the most trouble came from biotech offerings. It appears that there have been just too many deals — and yes, investors are getting much more selective.

How about this week?  Well, there are no biotechs on the calendar.  However, there are a spattering of other new stocks that plan to come public.

So, here’s a look:

New Stocks to Watch: Black Knight Financial Services Inc (BKFS)

Expected Offering Date:  Wednesday, May 20

Black Knight Financial Services Inc (NYSE:BKFS), which is a spinoff of Fidelity National Financial Inc (NYSE:FNF), is a provider of software for the mortgage industry. Black Knight Financial’s customers include 23 of the 25 largest U.S. mortgage operators and all of the 25 largest U.S. mortgage servicers.

BKFS software helps with such things as processing, portfolio analysis, risk management and compliance.

Last year, Black Knight Financial posted revenues of $855.8 million, up from $810.3 million in 2013. During this period, the adjusted Ebitda increased from $275.4 million to $347.3 million.

Black Knight Financial Services plans to issue 17 million shares at a range of $22 to $25, and the lead underwriters include JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp (NYSE:BAC), Wells Fargo & Co (NYSE:WFC), Goldman Sachs Group Inc (NYSE:GS), Citigroup Inc (NYSE:C), Credit Suisse Group AG (ADR) (NYSE:CS), Deutsche Bank AG (USA) (NYSE:DB) and SunTrust Banks, Inc.‘s (NYSE:STI) Suntrust Robinson Humphrey.

New Stocks to Watch: Baozun Inc. (BZUN)

Expected Offering Date: Thursday, May 21

Baozun Inc. (NASDAQ:BZUN) is a top e-commerce solutions provider in China with roughly 20% of the market. The platform is full-featured, with store operations, online marketing, customer service, warehousing and fulfillment. Customers include global operators like Nike Inc (NYSE:NKE) and Microsoft Corporation (NASDAQ:MSFT).

Over the years, Baozun’s growth has been particularly strong. Revenues have jumped from 954.5 million yuan ($153.8 million) to 1.6 billion yuan ($257.9 million) in 2014.

More recently, for the three months ended Mar. 31, 2015, Baozun’s revenues came to 477.2 million yuan ($76.9 million), up from 268.5 million yuan ($43.4 million) in the same period a year ago. There was also a 12.4% increase in net income to 2 million yuan ($0.3 million).

Baozun expects to issue 11 million shares at a range of $12 to $14 and the lead underwriters include Morgan Stanley (NYSE:MS), Credit Suisse and Bank of America.

New Stocks to Watch: Community Healthcare Trust (CHCT)

Expected Offering Date: Thursday, May 21

Community Healthcare Trust (NYSE:CHCT), which is a real estate investment trust (REIT), will use its initial public offering proceeds to purchase 35 properties that includes about 623,000 leasable square feet located in 18 states. These locations are hospitals and other healthcare facilities that are based in non-urban areas.

The industry segments are fairly diverse, spanning ambulatory surgery centers, behavioral facilities, dialysis clinics, medical office buildings, oncology centers and physician clinics. In all, there are 69 separate tenants and the occupancy rate is roughly 94%.

Community Healthcare Trust plans to issue 6.3 million shares at a range of $19 to $21, and the lead underwriters include Sandler O’Neill + Partners, L.P., Evercore Partners Inc. (NYSE:EVR) and Suntrust Robinson Humphrey.

New Stocks to Watch: PGA Holdings (PGND)

Expected Offering Date: Thursday, May 21

PGA Holdings (NYSE:PGND), which was founded nearly 30 years ago, is a provider of patient experience measurement, performance analytics and strategic advisory solutions for healthcare organizations. PGA Holdings believes its systems allow for improved clinical effectiveness, safety and cost efficiency.

Last year, PGA generated revenues of $281.6 million and adjusted Ebitda of $102.6 million. More than 22,000 medical facilities have used PGND’s services, and the retention rate is about 94%.

PGA expects to issue 8.9 million shares at a range of $22 to $24, and the lead underwriters include Barclays PLC (ADR) (NYSE:BCS), Goldman Sachs, William Blair & Company, L.L.C. and Wells Fargo.

New Stocks to Watch: Shopify (SHOP)

Expected Offering Date: Thursday, May 21

Shopify (NYSE:SHOP) allows companies — of any size — to manage online stores. The system is fairly easy to use, taking less than 15 minutes to set up. In all, there are 162,261 merchants on Shopify’s platform.

From 2012 to 2013, revenues surged from $23.7 million to $105 million. Although, SHOP continues to lose money. Last year, the net loss came to $22.3 million.

Shopify expects to sell 7.7 million shares at a range of $12 to $14 and the lead underwriters include Morgan Stanley, Credit Suisse and RBC Capital Markets, LLC.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll 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.

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