In typical summer fashion, the IPO market is slowing down, considering there were only three new stocks that went public last week. Of those, Neos Therapeutics (NEOS) and Blue Buffalo Pet Products (BUFF) were up over 30%.
With only six deals on tap this week, the low activity continues.
So let’s take a deeper look at each of this week’s new stocks:
New Stocks to Watch: NantKwest (NK)
Expected Offering Date: Tuesday
NantKwest is clinical-stage biotech company that is focused on developing treatments for cancer, infectious diseases and inflammatory diseases using a patient’s immune system. NK believes this approach is more effective because it deals with variations and mutations.
At its core, NantKwest offers a sophisticated system using the following: “a high-speed supercomputing infrastructure to help identify…known antigens,” “a next-generation genomic and transcriptomic sequencing system to identify the expression of the neoepitopes on the surface of the tumor cell,” “and a diverse library of human antibodies.”
The CEO of the company is Patrick Soon-Shiong, one of the world’s top surgeons and scientists. After all, he is the first to perform a stem cell transplant in a diabetic patient in the U.S. He also founded American Pharmaceutical Partners, which was sold to Fresenius SE for $5.7 billion in 2008 and Abraxis BioScience, which was sold to Celgene (CELG) for $3.7 billion in 2010.
NantKwest expects to sell 7 million shares at a range of $20 to $23 and the lead underwriters include BofA Merrill Lynch (BAC), Citi (C), Jefferies and Piper Jaffray.
New Stocks to Watch: Poseidon Containers Holdings (PCON)
Expected Offering Date: Thursday
Poseidon Containers is an owner and operator of 19 container ships, and PCON plans to purchase another four ships for nearly $220 million with the IPO funds. For the most part, the focus will be on fuel-efficient vessels, which should help boost margins.
The shipping business, however, has been under pressure because of excess capacity and slowing growth. Keep in mind that during the first quarter of this year PCON revenues came to $22 million, down from $29.9 million in the same period a year ago.
Poseidon Containers plans to issue 15.4 million shares at a range of $14 to $16 and the lead underwriters include Morgan Stanley (MS), Deutsche Bank (DB), UBS Investment Bank (UBS), Citi, Jefferies and ABN AMRO.
New Stocks to Watch: vTv Therapeutics (VTVT)
Expected Offering Date: Thursday
vTv Therapeutics is a clinical-stage biotech company that is focused on developing administered small molecule drug candidates. In fact, VTVT has a fairly robust pipeline, including treatments for Alzheimer’s disease (in Phase 3 clinical trials) and type 2 diabetes (in Phase 2b clinical trials).
Of course, these drugs target large market opportunities. For example, Alzheimer’s disease impacts 5.3 million people and diabetes affects 28.9 million people.
vTv Therapeutics plans to offer 7.8 million shares at a range of $15 to $17 and the lead underwriters for the IPO include Piper Jaffray and Stifel.
New Stocks to Watch: NEP Group (NEPG)
Expected Offering Date: Friday
NEP Group is the world’s largest outsourced provider of comprehensive live and broadcast production solutions, with a focus on premium sports, entertainment and other live event productions. NEPG’s clients include the NFL, PGA, MLB, HHL, NBA and the NCAA.
Last year, the company generated revenues $442.8 million and adjusted EBITDA of $145.1 million. At the IPO, NEP Group expects to offer 13 million shares at a range of $15 to $17, and the lead underwriters include Barclays (BCS), Morgan Stanley, Jefferies, Macquarie Capital and RBC Capital Markets.
New Stocks to Watch: RiverBanc Multifamily Investors (RMI)
Expected Offering Date: Friday
RiverBanc Multifamily Investors is a REIT that operates a portfolio of multifamily apartment communities. RMI got its start back in July 2013, with an initial investment of $69 million.
The plan is to purchase properties in the southeastern part of the United States. According to the S-1, the area has “above-average population growth and above-average net absorption rates.”
But RiverBanc is still in its early stages, and last year RMI’s revenues only amounted to $1 million.
RiverBanc Multifamily Investors expects to sell 3.8 million shares during its IPO at a range of $19 to $20, and the lead underwrites include Baird, Keefe Bruyette Woods, Suntrust Robinson Humphrey, Nomura Securities and Oppenheimer & Co.
New Stocks to Watch: TerraForm Global (GLBL)
Expected Offering Date: Friday
TerraForm Global, a yieldco created by SunEdison (SUNE), is a diversified renewable energy company, dealing with wind, solar and hydroelectric power assets. In terms of the market focus, GLBL will be in areas like China, Brazil, India, South Africa, Honduras and many others.
Already, the company has contracted projects to produce up to as much as 1,406.1 MW of power. And TerraForm forecasts its aggregate cash flow to reach $231.5 million by late 2016. Much of this will likely be distributed to shareholders.
TerraForm Global plans to issue 56.6 million shares at a range of $19 to $21 and the lead underwriters include J.P. Morgan (JPM), Barclays, Citi, Morgan Stanley, Goldman Sachs (GS), BofA Merrill Lynch and Deutsche Bank.
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.
