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7 New Stocks to Watch: MobileIron Leads 7 New IPOs

The IPO market is finally showing signs of strength again


During the past month or so, the IPO market has been getting back into gear. Last week Arista Networks (ANET) went public with a gain of 28%, even after pricing well-above its range. Some other gainers include Zendesk (ZEN), up 71%, and TrueCar (TRUE), which has returned about 61%. It certainly helps that the overall markets remain in the bull phase and that the U.S. economy continues to grow.

As for this week, 7 new stocks are expected to launch their deals. They are also a diverse group, ranging from shipping to energy to mobile tech.

So let’s take a look at each:

New Stocks to Watch: Abengoa Yield (ABY)

Expected Offering Date: Friday

Abengoa Yield, which is a unit of engineering/clean tech operator Abengoa, focuses on renewable, conventional power and electric transmission lines in places like the US, Mexico, Peru, Chile and Spain. The core business generates substantial amounts of steady cash flows. And yes, Abengoa Yield will essentially be a dividend play. The annual payout is expected to be $1.04 per share.

Last year, revenues came to $210.9 million and operating profits were $111.6. However, the debt load is a hefty $3.8 billion. Abengoa Yield plans to issue 23.1 million shares at a range of $25 to $27. The lead underwriters include Citi (C), BofA Merrill Lynch (BAC), Canaccord Genuity, HSBC, RBC Capital Markets and Banco Santander (SAN).

New Stocks to Watch: Aspen Aerogels (ASPN)

Expected Offering Date: Friday

Aspen Aerogels develops “high-performance aerogel insulation used primarily in large-scale energy infrastructure facilities.” All in all, the products provide two to five times the thermal performance of widely used traditional insulation in a thin, easy-to-use and durable blanket form. Some of the customers include ExxonMobil (XOM), Formosa Petrochemical, Pemex Gas and NextEra Energy Resources.

From 2008 to 2013, revenues went from $17.2 million to $82.1 million. But the growth is likely to continue as the addressable market opportunity is about $2.8 billion. Aspen Aerogels expects to offer 6.7 million shares at a range of $14 to $16. The lead underwriters include Barclays (BCS), JP Morgan (JPM) and Citi.

New Stocks to Watch: Memorial Resource Development (MRD)

Expected Offering Date: Friday

Memorial Resource Development is an independent natural gas and oil operator, with a focus primarily in the Terryville Complex of North Louisiana. The region has a hefty supply of overpressured, liquids-rich natural gas. In all, the company has a leasehold position of 347,458 gross (205,818 net) acres. Last year, Memorial generated $159 million in adjusted EBITDA. Although, the company has continued to make substantial investments in its fields, with capital expenditures coming to $203 million in 2013.

Memorial plans to issue 36 million at a range of $16 to $18. The lead underwriters include Citi, Barclays, BofA Merrill Lynch, BMO Capital Markets, Goldman Sachs (GS), Raymond James, RBC Capital Markets and Wells Fargo (WFC).

New Stocks to Watch: MobileIron (MOBL)

Expected Offering Date: Friday

MobileIron develops software that helps enterprises manage their mobile assets, including services like oboarding/offboarding employees, controlling access to content and apps, as well as security. The company has benefited from the trend of BYOD (bring your own device) in the workforce. From 2011 to 2013, revenues surged from $13.9 million to $105.6 million. However, the company has continued to lose money. Last year, the net loss was $32.5 million.

MobileIron plans to issue 11.1 million shares at a range of $8 to $10. The lead underwriters include Morgan Stanley (MS), Goldman Sachs, Deutsche Bank (DB) and Barclays.

New Stocks to Watch: Zhaopin Limited (ZPIN)

Expected Offering Date: Thursday

Founded about 24 years ago, Zhaopin is a top career platform in China. It boasts more than 77 million registered users and about 11.4 million job listings. Another key asset is Zhaopin’s national infrastructure. Consider that the company has more than 2,000 sales and account management reps.

In fiscal year ended June 30, 2013, revenues hit $143.1 million, up from $121.7 million in the same period in fiscal 2012. However, the company posted a net loss of $17.5 million in 2013. Zhaopin expects to offer 5.6 million shares at a range of $12.50 to $14.50. The lead underwriters include Credit Suisse (CS) and UBS Investment Bank (UBS).

New Stocks to Watch: Trinseo (TSE)

Expected Offering Date: Thursday

Trinseo manufactures emulsion polymers and plastics. Some of the drivers for the business include improved construction in the U.S., a rebound in the auto industry and growth in emerging markets. The company’s products are found in tires, carpet, packaging board, appliances and medical devices. However, sales have been volatile for the company, as sales fell from $6.2 billion in 2011 to $5.3 billion in 2013. The company also lost money last year.

Trinseo expects to issue 10 million shares at a range of $17 to $19. The lead underwriters include Goldman Sachs, Deutsche Bank, Citi, Morgan Stanley, Barclays, BofA Merrill Lynch, HSBC and Jefferies.

New Stocks to Watch: Nordic American Offshore (NAO)

Expected Offering Date: Thursday

Nordic American Offshore, which is a spinoff of Nordic American Tankers (NAT), is focussed on operating supply vessels in the North Sea, particularly drilling rigs. The initial fleet includes six secondhand ships, which were purchased for $265.7 million in November 2013. The company has also entered an agreement for the construction of two new vessels for $44 million each.

Nordic American Offshore expects to issue 5.9 million shares at a range of $16 to $18. The lead underwriters include Morgan Stanley, Credit Suisse, JP Morgan and DNB Markets.

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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