This week’s newcomer is a banking company with Louisiana roots:  

 

 

The deal is expected to be priced Monday evening, June 30, to start trading Tuesday, July 1^st. This kicks off the second half of 2014.

 

Let’s take a look back at the first half of this year.

 

IPOs priced: 142

Up: 93

Down: 49

Average gain: 18.3 percent.

NADSAQ Composite Index: UP 5.3 percent

 

(The IPO numbers are according to the U.S. Securities and Exchange Commission filings. Excluded are unit offerings consisting of common stock and warrants, closed-end investment companies, bank conversions and foreign companies offering American Depositary Shares that represent shares of stock already trading on their local stock exchanges.)

 

Enerous (WATT) is a Baton Rouge, Louisiana-based development stage technology company working to develop technology that can enable wireless charging or powering of electronic devices at a distance. On March 27, 2014, the company priced its IPO of 4 million shares at $6 each. It closed Friday, June 27 at $15.50, UP 158.3 percent from its initial offering price. 

 

NephroGenex (NRX) is a Research Triangle Park, North Carolina-based pharmaceutical company focused on the development of therapeutics to treat kidney disease. On Feb. 10, 2014, the company priced its IPO of 3.1 million shares at $12 each. It closed Friday at $5.95, DOWN 50.4 percent from its initial offering price.

 

Now let’s take a look further back to 2013’s first half.

 

IPOs priced: 91

Up: 65

Down: 24

Unchanged: 2

Average gain: 23.7 percent.

NADSAQ Composite Index: UP 12.7 percent

 

 

ExOne (XONE) is a North Huntingdon, Pennsylvania-based provider of three-dimensional printing machines and printed products to industrial customers. On Feb. 6, 2013, the company priced its IPO of 5.3 million shares at $18 each. It closed Friday, June 28, 2013, at $61.72, UP 242.9 percent from its initial offering price. Fast forward to Friday, June 27, 2014, ExOne closed at $37.59, DOWN 39.1 percent from a year ago, but UP 108.8 percent from its initial offering price.

 

Professional Diversity Network (IPDN) is a Chicago-based provider of online networks serving diverse professionals in the United States The company focuses on Hispanic and African-American professionals. On March 5, 2013, the company priced its IPO of 8 million shares at $8 each. It closed Friday, June 28, 2013, at $4.19, DOWN 47.6 percent from its initial offering price. Fast forward to Friday, June 27, 2014, it closed at $4, DOWN 50 percent from a year ago. 

Looking into the week of July 7, the calendar has only one IPO. But anything could happen. July will still be young.

 

Stay tuned.

 

 

 

The records show pharmaceutical IPOs have underperformed in today’s new-issues market. The average opening-day loss since the beginning of April is 2.82 percent.

 

Consider this: From April 1 through June 13, 2014, eight pharmaceutical IPOs were priced, according to the U.S. Securities and Exchange Commission filings. Seven of the eight attracted so little interest that they had be to be cut in size to get out the door. Their opening-day scorecard is poor.

 

Only two of the eight finished their opening day as winners. Five were losers. One was unchanged. And yes, there is that average opening-day loss of 2.82 percent.

 

From April 1 through mid-June, 51 IPOs from other sectors were priced. Their scorecard: 40 winners, nine losers, two unchanged. The average opening-day gain for all 51 was 10.64 percent.

 

Three of this week’s eight pharmaceutical IPOs are companies with stories. So you might want to put Graham and Dodd back on the bookshelf. You don’t have to be a fan of Huey Lewis and the News – and their 1984 hit “I Want a New Drug” – to take note of these companies with products in development to treat chronic kidney and gastrointestinal diseases, breast cancer and obesity.   

 

Ardelyx (ARDX – proposed) is a Fremont, California-based clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of innovative non-systemic, small molecule therapeutics that work exclusively in the gastrointestinal tract to treat cardio-renal, GI and metabolic diseases. Chronic kidney disease and irritable bowel syndrome are among the illnesses targeted by the drugs in their pipeline. (For more information, please click here: Ardelyx)

 

Syndax Pharmaceuticals (SNDX – proposed) is a Waltham, Massachusetts-based late-stage biopharmaceutical company focused on the development and commercialization of its lead product candidate, entinostat, an epigenetic therapy for treatment-resistant cancers. Entinostat was recently granted Breakthrough Therapy designation by the U.S. Food and Drug Administration based on data from Syndax on a completed randomized Phase 2b clinical trial in estrogen receptor-positive locally recurrent or metastatic breast cancer.(For more information, please click here: Syndax Pharmaceuticals)

 

 

The favorite this week is Markit – and it’s all about the money. It’s approaching $1 billion in revenue and $128.5 million in net income for the last 12 months. This financial services company has only been around for about 11 years.

 

Markit Ltd. (MRKT – proposed) is a London-based global diversified provider of financial information services. Since Markit launched its business in 2003, the company has become deeply embedded in the systems and workflows of many of its customers. It continues to become increasingly important to its customers’ operations. Markit provides pricing and reference data, indices, valuation and trading services, trade processing, enterprise software and managed services. It counts more than 3,000 institutional customers, including banks and hedge funds. (For more information, please click here: Markit Ltd.)

 

 

OK, Elvis fans, we didn’t forget about you. (We caught your karaoke version of “Burning Love” when you thought no one noticed.) The records show energy IPOs have been hot in today’s new-issues market. There are three on this week’s calendar: One is a coal company, another is an oil and gas company in the Appalachian Basin in Pennsylvania and a third is an oil and gas company in the Permian Basin deep in the heart of Tex-Ass.

 

Consider this: From April 1 through June 13, 2014, five energy IPOs were priced. Their opening-day scorecard makes for great reading. All five finished their opening day as winners with an average opening-day gain of 18.6 percent.

 

Over the same time frame, from April through mid-June, 54 IPOs from other sectors were priced. Their scorecard showed 37 winners, 14 losers, three unchanged, and the average opening-day gain for all 54 was 8.13 percent.

 

Here are the highlights for this week’s energy offerings:

 

Eclipse Resources (ECR – proposed) is a State College, Pennsylvania-based independent exploration and production company engaged in the acquisition and development of oil and natural gas properties in the Appalachian Basin. The company has assembled a leasehold position in Eastern Ohio and the Utica Shale fairway. (For more information, please click here: Eclipse Resources)

 

Foresight Energy LP (FELP – proposed) is a St. Louis, Missouri-based limited partnership operating low-cost and high-margin bituminous thermal coal production operations in the Illinois Basin. The company plans to make cash minimum quarterly distribution of $0.3375 per unit for each whole quarter, or $1.3500 per unit on an annualized basis, to yield 6.7 percent at the mid-point of its price range. (For more information, please click here: Foresight Energy LP)

 

Viper Energy Partners LP (VNOM – proposed) is a Midland, Texas-based limited partnership formed by Diamondback to own, acquire and exploit oil and natural gas properties in North America. The company’s initial assets consist of mineral interests in oil and natural gas properties in the Permian Basin in West Texas. The Permian Basin is one of the oldest and most prolific producing basins in North America. (For more information, please click here: Viper Energy Partners LP)

 

Looking into the week of June 23, the calendar has nine IPOs so far. They are expected to raise over $900 million. But more names could pop onto the calendar by the time that Monday, June 23, rolls around.

 

Stay tuned.

 

 

The calendar for the week of June 9 lists eight IPOs, which expect to raise about $1.8 billion. Don’t look now, but June 2014 is getting off to a fast start.

 

The June calendar has produced 192 IPOs since 2001, after the Internet bubble had burst, according to U.S. Securities and Exchange Commission filings. That makes 15 IPOs an “average” June, and that number is already in the crosshairs for 2014. Last week’s calendar produced three IPOs; eight more are set for this week, and another four IPOs are on tap for the following week. That adds up to 15 – an “average” June. And yes, the world is still waiting for Alibaba to announce its pricing terms.

 

Worth noting: There are stories out there that Alibaba is pointing to August 8 – the eighth day of the eighth month. Eight is considered a lucky number in China. A double 8 – an 88 – is considered very lucky. Actually this sounds more plausible than other stories we have been hearing.

 

Back to this week: The IPO professionals are reportedly focusing on three deals – Abengoa Yield plc (ABY – proposed); MobileIron (MOBL – proposed) and Zhaopin Ltd. (ZPIN – proposed).

 

Abengoa Yield plc is a Brentford, UK-based dividend play in the electric utility sector. It was formed in 2013 to serve as the primary vehicle through which Abengoa will own, manage and acquire renewable energy, conventional power and electric transmission lines and other contracted revenue-generating assets, initially focused on North America (the United States and Mexico) and South America (Peru, Chile, Uruguay and Brazil) as well as Europe (Spain). Note: Starting in the third quarter of 2014, the company plans to pay a quarterly dividend that will initially be set at $0.2592 per share, or $1.04 per share on an annualized basis, to yield 4 percent, based on the mid-point of its $25-to-$27 price range. (For more information, please click here: Abengoa Yield plc)

 

MobileIron is a Mountain View, California-based company that invented a purpose-built mobile IT platform for enterprises to secure and manage mobile applications, content and devices while giving their employees a choice of device, privacy and a native user experience. Translation: MobileIron software makes it easier to work on a mobile device, whether it’s on an iPhone, an iPad, an Android or a BlackBerry. (For more information, please click here: MobileIron)

 

Zhaopin is a Beijing-based provider of an online recruitment Website and human resources services in China. It’s been described as the largest online job service in China. With over 74 million registered users, the company is the second-largest provider measured by revenues in 2013, according to the iResearch Public Data. (For more information, please click here: Zhaopin Ltd)

 

Rounding out the list on this week’s calendar:

Aspen Aerogels (ASPN – proposed) is a Northborough, Massachusetts-based provider of high-performance aerogel insulation used mostly in large-scale energy infrastructure facilities. (For more information, please click here: Aspen Aerogels)

 

Memorial Resource Development (MRD – proposed) is a Houston-based independent natural gas and oil company focusing on the exploitation, development, and acquisition of natural gas, NGL and oil properties with most of its activity in the Terryville Complex of North Louisiana. Note this from its prospectus: “We do not anticipate declaring or providing any cash dividends to holders of our common stock in the foreseeable future.” (For more information, please click here: Memorial Resource Development)

 

Nordic American Offshore Ltd. (NAO – proposed) is a Hamilton, Bermuda-based company formed in October 2013 to acquire and operate platform supply vessels with an initial focus of operations in the North Sea. Its ships are to be used for transporting supplies and equipment to and from offshore installations such as drilling rigs. (Note: The offering is called an IPO, but some consider this a follow-on offering. Its common shares are traded on the Norwegian OTC List, an over-the-counter market that is administered by a subsidiary of the Norwegian Securities Dealers Association, under the symbol “NAO.” On May 30, 2014, the closing price of its common shares was 102 Norwegian Kroner (“NOK”) per share, which was equivalent to approximately $16.73 per share based on the Bloomberg Composite Rate of NOK5.9785 per $1.00 in effect on that date.)(For more information, please click here: Nordic American Offshore Ltd.)

 

Trinseo S.A. (TSE – proposed) is a Berwyn, Pennsylvania-based materials company engaged in the manufacture and marketing of emulsion polymers and plastics, including various specialty and technologically differentiated products. (For more information, please click here: Trinseo S.A.)

 

Looking into the week of June 16, the calendar has four IPOs so far. They are expected to raise about $1.4 billion. But more names could pop onto the calendar by the time that Monday, June 16, rolls around.

 

Stay tuned.

 

 

Of course, there are a couple of speed bumps on summer’s IPO Highway; maybe that’s where the confusion sets in. It slows down surrounding the July 4^th holiday and then closes down by mid-August ahead of the Labor Day weekend. But the floodgates are open for business the rest of the summer.

 

Since 1970, the “average” summer amounts to 82 IPOs and the “average” year amounts to 302 IPOs. The busiest summer on record, according to the U.S. Securities and Exchange Commission filings, came in 1986 when 248 of the year’s 728 IPOs were priced. That amounted to 34.1 percent of the year’s volume. The slowest summer came in 1974 when one – yes, just one – IPO was priced. The total IPO traffic in 1974 was nine. The slowest year came in 1975 when six IPOs were priced; three came to market during that summer.

 

This brings us to the present and the first week of June 2014.

 

Over the past several years, the IPO market has shut down during the Memorial Day week, and by mid-June, the bankers have hung up the “Open” sign. This year’s IPO market swings into gear sooner.

 

The action starts this week with a single offering.

 

True, there may be only one IPO on the calendar, but it is said to have the attention of the IPO players. The buzz started early. Here’s the deal:

 

Arista Networks (ANET – proposed) is a Santa Clara, California-based supplier of cloud networking solutions. The company’s solutions use software to address the needs of large-scale Internet companies, cloud service providers and next-generation data centers for enterprises.

 

Arista’s customers, according to the prospectus, “include six of the largest cloud services providers based on annual revenue, including eBay, Facebook, Microsoft and Yahoo!, financial services organizations such as Barclays, Citigroup and Morgan Stanley, and a number of media and service providers, including AOL, Comcast, Equinix, ESPN, Netflix, and Rackspace.”

 

The prospectus continued: “Our cloud networking solutions consist of our Extensible Operating System, or EOS, a set of network applications and our 10/40/100 Gigabit Ethernet switches. … Since we began shipping our products, we have grown rapidly, and according to Crehan Research, we have achieved the second-largest market share in data center 10/40/100 Gigabit Ethernet switch ports, excluding blade switching, sold in 2013.” Competitors: Cisco, Juniper, Brocade, Hewlett-Packard and Dell

 

Consider Arista’s first-quarter results:

The deal is expected to be priced on Thursday evening, June 5, to trade on Friday morning, June 6.

 

For more information, please click here: Arista Networks

 

Looking into the second week of June, the calendar has just one IPO so far. It is expected to raise about $100 million. But more names could pop onto the calendar by the time that Monday, June 9, rolls around.

 

Stay tuned.