Last week turned out to be fairly lackluster for IPOs, with CommScope (COMM), Endurance International (EIGI) and Sprague Resources (SRLP) all posting losses. The only winner was Aerie Pharmaceuticals (AERI).
However, the performance should not be a sign that the market is moving into bear-mode. Instead, the three dud offerings were mostly moderate growth operators, which translates to little excitement for investors.
And this week, there will be much more to choose from. In fact, there are nine offerings on tap. Take a look:
Brixmor Property Group (BRX)
Brixmor Property Group is the biggest owner and operator of grocery-anchored properties in the U.S. The portfolio includes 522 shopping centers with about 87 million square feet of gross leasable area. Its four largest tenants are Kroger (KR), TJX (TJX), Publix Super Markets and Walmart Stores (WMT).
During the first half of 2013, revenue increased from $557.4 million to $572.7 million and adjusted EBITDA went from $370.1 million to $378.1 million.
BRX plans to issue 37.5 million shares at a price range of $19 to $21. The lead underwriters include BofA Merrill Lynch (BAC), Citi (C), JPMorgan (JPM) and Wells Fargo Securities (WFC).
58.com (WUBA)
Next up, 58.com has built China’s largest online marketplace that serves local merchants and consumers in terms of monthly unique visitors. In Q2, that metric came to just under 130 million, while the platform also has 4.3 million active local businesses. Plus, nearly 40% of the pageviews come from mobile apps.
From 2010 to 2012, revenues posted sizzling growth, going from $10.7 million to $87.1 million. 58.com generates much of its revenues from selling memberships and providing online marketing services. The bad news: The net loss was $30.4 million last year.
WUBA plans to issue 11 million shares at a price range of $13 to $15. The lead underwriters include Morgan Stanley (MS), Credit Suisse (CS) and Citi.
Criteo (CRTO)
Criteo operates a platform that helps e-commerce companies convert more traffic to customers. The system is based on sophisticated algorithms and Big Data analytics, which has produced $6.5 billion in post-click sales. Top clients include Expedia (EXPE), Lenovo (LNVGY) and Staples (SPLS).
During the first half of this year, CRTO posted revenues of $252.7 million, up 72%. But there was still a net loss of $6.4 million.
CRTO plans to 7.2 million shares at a price range of $23 to $26. The lead underwriters include JPMorgan, Deutsche Bank (DB) and Jefferies.
Essent Group (ESNT)
Essent Group insures residential mortgages and has about 12% of the market share for new policies. This is impressive since the company was founded back in 2008.
It helps that Essent has big-time backers. For example, one of the investors is Valorina, which is controlled by billionaire George Soros.
In the fourth quarter of 2012, Essent hit profitability. And for the first nine months of this year, earnings came to an impressive $46.4 million.
Essent Group intends to issue 19.7 million shares at a price range of $13.50 to $15.50. The lead underwriters include Goldman Sachs (GS), JPMorgan, Barclays (BCS) and Credit Suisse.
Marcus & Millichap (MMI)
Marcus & Millichap is a national brokerage firm that specializes in commercial real estate investments. The company has over 1,100 sales and financing professionals across 73 states.
The sweet spot for MMI is on private transactions under $10 million. Last year, MMI closed over 6,100 of these types of deals … and the result was about $385.7 million in revenues, up from $274.7 million in 2011.
MMI plans to offer 6 million shares at a price range of $14 to $16. The lead underwriters include Citi and Goldman Sachs.
Qunar (QUNR)
Qunar, which is owned by Baidu (BIDU), operates a search-based commerce platform for the travel industry in China. From 2010 to 2012, the total number of web users soared from 71.7 million to 187.3 million. They are now at 203.2 million.
During the first half of this year, revenues jumped by 75% to 58.5 million. But there was a loss of $2.6 million.
Qunar plans to issue 11.1 million shares at a price range of $9.50 to $11.50. The lead underwriters include Goldman Sachs, Deutsche Bank and Stifel.
Surgical Care Affiliates (SCAI)
The company runs 167 ambulatory surgery centers, five surgical hospitals and one sleep center with 11 locations. To help reduce costs and provide better quality of care, SCAI has focused on forming strategic relationships with physician groups and payors.
From 2010 to 2012, revenues increased from $715 million to $750 million. Plus, cash flow has definitely been strong. Adjusted EBITDA came to $133 million last year.
SCAI expects to issue 9.8 million shares at a price range of $21 to $24. The lead underwriters include JPMorgan, Citi, BofA Merrill Lynch, Barclays, Goldman Sachs and Morgan Stanley.
The Container Store (TCS)
The Container Store is a storage retailer, which has 61 stores across 22 states. And growth has been strong, as comparable-store sales have increased for 13 consecutive quarters and fiscal 2012 revenues increased by 12% to $706.7 million.
A typical location has about 19,000 selling square feet and contains about 10,500 unique stock-keeping units sourced from 700 vendors around the world. Just some of the products include countertop organizers, cabinet storage, specialty boxes, packing material, garment racks, hangers, garage systems, glass food storage and gift wrap. For the most part, target customers are affluent, highly educated and busy women.
TCS plans to offer 12.5 million shares at a price range of $14 to $16. The lead underwriters include JPMorgan, Barclays, Credit Suisse, Morgan Stanley, BofA Merrill Lynch, Wells Fargo and Jefferies.
Veracyte (VCYT)
Veracyte is a diagnostics company that focuses on molecular cytology, which helps to improve patient outcomes and lower healthcare costs. The systems are targeted at diseases that require invasive procedures and are based on genomic information.
As a sign of the Veracyte’s success, the company has obtained positive coverage from Aetna (AET), Humana (HUM), Medicare and UnitedHealthcare (UNH). There is also a co-promotion agreement with Genzyme, which is a division of Sanofi (SNY).
Veracyte’s first products hit the market in 2011 and generated $2.6 million revenues. As for the past 12 months, the revenues came to $17.1 million.
The company plans to issue 4.7 million shares at a price range of $13 to $15. The lead underwriters include Morgan Stanley and Leerink Swann.
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.
