Cybersecurity Operator Rapid7 Leads This Week’s New Stocks

Last week, the market for new stocks slowed down in the wake of the Independence Day holiday. And the IPO market probably only has a few weeks activity left before it goes into hibernation mode until mid-September or so.

In the meantime, it looks like the market for new stocks will remain robust. For example, this week there are 8 deals on the calendar, and some of them should be big-time winners, like Rapid7 — a top player in the red-hot cybersecurity space.

Here’s a closer look at this week’s new stocks.

New Stocks to Watch: BioCardia (BCDA)

Expected Offering Date: Thursday

BioCardia is a clinical-stage biotech operator that is focused on the development of therapies for cardiovascular diseases. The lead candidate, which is called the CardiAMP Cell Therapy System, will soon begin Phase III pivotal trials. The therapy targets ischemic systolic heart failure.

The company uses autologous-cell-based approaches in its treatments. That is, the treatment uses a patient’s own cells to attack disease, which has so far proven to be quite effective and prone to fewer side-effects.

BioCardia expects to sell 3.85 million shares at a range of $12 to $14 and the lead underwriters include Cantor Fitzgerald, Roth Capital and Maxim Group LLC.

New Stocks to Watch: Jupai Holdings Ltd. (JP)

Expected Offering Date: Thursday

Jupai Holdings is a wealth manager that’s based in China. The footprint includes 32 client centers in 18 cities and the focus is on those clients with assets of $500,000 or more.

From 2012 to 2014, revenues jumped from $8.3 million to $38.9 million. The company has also remained profitable. Last year, net income came to $14.4 million.

Jupai Holdings expects to issue 5.9 million shares at a range of $10 to $12 and the lead underwriters include Credit Suisse (CS) and China Renaissance.

New Stocks to Watch: Ollie’s Bargain Outlet Holdings (OLLI)

Expected Offering Date: Thursday

Ollie’s Bargain Outlet is an extreme-value retailer of brand name merchandise, such as for housewares, foods, toys, hardware and floor coverings. And a key to the strategy is to create a “fun” environment, such as with humorous signage.

From fiscal 2010 to 2014, net sales jumped from $335.7 million to $638 million, and adjusted EBITDA increased from $43.7 million to $80.3 million. During this period, the store base nearly doubled, jumping from 95 stores to 176 stores.

Ollie’s Bargain Outlet plans to sell 8.9 million shares at a range of $13 to $15 and the lead underwriters include J.P. Morgan (JPM), Jefferies, BofA Merrill Lynch (BAC), Credit Suisse and Piper Jaffray.

New Stocks to Watch: ProNAi Therapeutics (DNAI)

Expected Offering Date: Thursday

ProNAi Therapeutics is a biotech company that is focused on treating cancer. To this end, the company has created its own DNA interference (DNAi) platform, which is based on genes called oncogenes that are known to be involved in cancer cell survival and proliferation.

The lead candidate is PNT2258, which targets the BCL2 oncogene that has been linked to multiple cancers. The drug is currently in a Phase 2 trial.

ProNAi Therapeutics plans to sell 6.7 million shares at a range of $14 to $16 and the lead underwriters include Jefferies and BofA Merrill Lynch.

New Stocks to Watch: Chiasma (CHMA)

Expected Offering Date: Friday

Chiasma is a late-stage biotech company that is focused on creating treatments for orphan diseases. In fact, one of its drugs — a treatment for acromegaly (a condition that results in the body’s production of excess growth hormone) — has completed phase 3 clinical trials. So it is likely to come onto the market this year.

And the market opportunity is large, to the tune of $730 million.

Chiasma plans to sell 5.36 million shares at a range of $13 to $15 and the lead underwriters include Barclays (BCS) and Cowen & Company.

New Stocks to Watch: MasterCraft (MCFT)

Expected Offering Date: Friday

Founded in 1967, MasterCraft is a leading developer of premium performance sport boats. Some of its innovations include the pickle-fork style bow, the twin v-drive engine and the fully integrated surf system. The company’s boats retail from $60,000 to $150,000.

From fiscal 2012 to 2014, sales grew from $137.3 million to $177.6 million and adjusted EBITDA went from $1.7 million to $18.4 million.

MasterCraft expects to issue 6.1 million shares at a range of $13 to $15 and the lead underwriters include Baird, Raymond James and Wells Fargo Securities (WFC).

New Stocks to Watch: Ooma (OOMA)

Expected Offering Date: Friday

Ooma is a provider of cloud-based communications systems for small businesses and homes. So far, the company offers its services in the U.S. and Canada.

During the first quarter of this year, revenues came to $19.9 million, up from $16.3 million in the same period a year ago. However, the company continues to lose money. During Q1, the net loss was $3.9 million.

Ooma plans to issue 5 million shares at a price range of $16 to $18 and the lead underwriters include Credit Suisse, BofA Merrill Lynch and JMP Securities.

New Stocks to Watch: Rapid7 (RPD)

Expected Offering Date: Friday

Rapid7 is a provider of cybersecurity software based on intensive big data analytics. The company offers security solutions for complex technologies like cloud computing and mobile devices.

From 2011 to 2014, revenues surged from $31 million to $76.9 million. However, the company remains unprofitable. Last year, the net loss was $32.6 million.

Rapid7 expects to sell 6.45 million shares at a range of $13 to $15 and the lead underwriters include Morgan Stanley (MS) and Barclays.

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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