While last week’s IPO action wasn’t completely bereft of duds — we’re looking at you, YuMe (YUME) — it was overall pretty strong, including first-day moves like Cvent’s (CVT) 57% jump and Intrexon’s (XON) 82% move.
However, activity will fall off a bit with just three deals on the calendar. This is seasonally par for the course, as by late august, the IPO market traditionally goes dark until about mid-September.
Nonetheless, here’s a look at the docket:
Envision Healthcare is an outsourced medical services operator, with more than 20,000 affiliated clinicians. The coverage is extensive, which includes expertise in areas like emergency, anesthesiology, hospitalist/inpatient care, radiology surgery, tele-medicine and even fixed-wing air ambulance and disaster response.
While EVHC is one of the largest players in the industry, its market share still is just 8%, which means there’s plenty of opportunity to pursue more acquisitions to build even more critical mass.
For fiscal 2013, revenues in the first six months grew by 11% year-over-year to $1.79 billion, and adjusted EBITDA climbed by 10% to 206.9 million.
Envision’s offering should be a large one. The company plans to issue 35 million shares on the New York Stock Exchange under the ticker “EVHC” at a price range of $20 to $23. Lead underwriters include Goldman Sachs (GS), Barclays (BCS), BofA Merrill Lynch (BAC) and Citi (C).
Founded 11 years ago, Sophiris Bio is a clinical-stage biotech company that focuses on treatments for urological diseases. Its lead candidate is PRX302, which attacks the symptoms of benign prostatic hyperplasia (BPH), or an enlarged prostate. The typical treatment is oral medications, but they can have painful side effects.
As a validation of PRX302, SPHS signed an exclusive license agreement with Kissei Pharmaceutical in 2010. The agreement allows for development and commercialization for the Japanese market.
Sophiris, which already trades on the Toronto Stock Exchange, plans to issue 5 million shares on the Nasdaq under the ticker “SPHS” for $13. Lead underwriters include Citi and Leerink Swann.
Third Point Reinsurance
Dan Loeb, who operates the Third Point hedge fund, is one of the founding shareholders of Third Point Reinsurance. Of course, Loeb has a standout investment track record; the average return on his original fund is 21% per year since 1995. In fact, one of his latest mega-wins was a $1 billion-plus profit for his investment in Yahoo (YHOO).
As for TPRE, it is a Bermuda-based property and casualty insurance operator. But its focus is on the reassurance market; the company essentially insures the excess loses for other insurance companies. It’s a risky game, but Loeb has a top-notch manager in place — John Berger, who has roughly three decades of experience in the space.
Last year, net income came to $99.4 million, and the company is sitting on $74.4 million in profits for Q1 2013.
Third Point Reinsurance plans to issue 22.2 million shares on the NYSE under the ticker “TPRE” at a range of $12.50 to $14.50. Lead underwriters for the deal include JPMorgan (JPM), Credit Suisse (CS), Morgan Stanley (MS), BofA Merrill Lynch and Citi.
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.