Only four companies pulled off IPOs last week, but the action still was pretty fierce, as two deals — Voxeljet (VJET) and Veeva Systems (VEEV) — more than doubled. However, investors might not be granted the same fireworks show this week.
Here’s a look at the five companies expected to pull off IPOs this week:
Aerie Pharmaceuticals is a clinical-stage biotech operator that is focused on therapies for glaucoma — a large market that saw sales of branded and generic drugs hit $4.5 billion in the U.S., Europe and Japan. The senior management team has extensive experience with ophthalmic products, including Acular, Istalol, Ocuflox and Zylet.
Aerie plans to use the IPO proceeds to build a 100-person sales team that would target the nation’s roughly 10,000 eye care specialists. In other markets, the company expects to forge partnerships.
Aerie Pharmaceuticals expects to issue 5.3 million shares on the Nasdaq under the ticker “AERI” at a price range of $12 to $14. Lead underwriters include RBC Capital Markets and Stifel Nicolaus (SF).
CommScope is a top provider of connectivity and infrastructure solutions for mobile and broadband networks. The company has benefited from strong growth in data centers, cloud computing, video streaming and Big Data. And as a testament to its technology, COMM has a portfolio of about 2,700 patents and patent applications across the globe.
For the first half of this year, sales increased by 10% to $1.75 billion and net income swung from a loss of $11.4 million to a gain of $17 million. COMM’s customers include biggies like AT&T (T), Verizon (VZ), T-Mobile US (TMUS) and Huawei Technologies.
CommScope plans to issue 38.5 million shares on the Nasdaq under the ticker “COMM” at a range of $18 to $21. Lead underwriters include JPMorgan (JPM), Deutsche Bank (DB), BofA Merrill Lynch (BAC), Barclays (BCS), Credit Suisse (CS), Goldman Sachs (GS), Jefferies, Morgan Stanley (MS), RBC Capital Markets and Wells Fargo (WFC).
Endurance International provides cloud-based services to small- and medium-sized businesses, with about 3.4 million subscribers. Examples of its 150+ products include website design, email and e-commerce.
For the past three years, EIGI boosted revenues from $87.8 million to $292.2 million, which comes to a compound annual growth rate of 82%. During this period, adjusted EBITDA grew even faster, ramping from $25.1 million to $132.8 million (a 130% compound annual growth rate).
Endurance plans to issue 23.4 million shares on the Nasdaq under the ticker “EIGI” at a price range of $14 to $16. The lead underwriters include Goldman Sachs, Credit Suisse and Morgan Stanley.
SRLP is a master limited partnership that is involved in the purchase, storage and distribution of refined petroleum products and natural gas. Its core business has been around since 1870, and in all, its combined storage capacity is about 9.1 million barrels per day.
During the first half of this year, revenues increased from $2 billion to $2.5 billion, while adjusted EBITDA went from $28.6 million to $35.2 million.
Sprague Resources plans to issue 8.5 million shares on the New York Stock Exchange under the ticker “SRLP” at a price range of $19 to $21. The lead underwriters include Barclays, JPMorgan and BofA Merrill Lynch.
Global Defense & National Security Systems
The Global Defense & National Security Systems offering is a “blank check” deal. That is, the company has no operating assets, but will use the proceeds of an IPO to engage in acquisitions.
As for the company, its goal is to focus on companies that are developing next-generation technologies and capabilities for the US defense sector. Even with budget cuts, the market is huge. The fiscal year 2014 Department of Defense budget is $606.1 billion, according to the company’s S-1.
Global Defense & National Security Systems expects to issue 6 million shares on the Nasdaq under the ticker “GDEF” at $10 each. The lead underwriter is Cowen & Company.
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.