The IPO Buzz: A Mouth-Watering IPO Menu

Shake Shack got a humble start in 2001 when it rolled a hot dog cart into New York City’s Madison Square Park. Reportedly, it was an instant hit. Lines formed daily throughout the summer months and Shake Shack was off to meet its future. In 2004, Shake Shack officially opened, and over the last 10 years, it has experienced rapid growth. The company has about 63 Shake Shacks in nine countries and 34 cities. In addition, the company plans to open at least 10 new domestic company-operated Shake Shacks each year. It believes over the long term that it has the potential to grow to at least 450 Shacks in new and existing markets.
An American Classic
But first things first: This week, Shake Shack has another world to conquer – Wall Street.
Shake Shack (SHAK – proposed) is a New York City-based modern  “roadside” burger stand serving a classic American menu of premium burgers, hot dogs, crinkle-cut fries, shakes, frozen custard, beer and wine. The company reported net income of $4.5 million on revenues of $106.7 million for the 12-month period ended Sept. 31, 2014. It has about 1,680 employees. The company plans to price 5 million shares of Class A common stock at $14 to $16 each on Thursday evening to trade Friday morning on the New York Stock Exchange.
(For more information, please click here: Shake Shack)
Lighting a Spark
This week’s calendar expects to raise slightly over $1 billion. Below are a couple of reported favorites among the 11 IPOs.
Spark Therapeutics (ONCE– proposed) is a Philadelphia-based gene therapy company engaged in developing one-time, life-altering gene therapy treatments to transform the lives of patients and re-imagine the treatment of debilitating diseases. It is also engaged in treating orphan diseases. Spark is conducting two clinical trials: a Phase III program to address blindness caused by mutations of the RPE65 gene and a Phase I/II program in hemophilia B. The company is also pursuing discovery programs in neurodegenerative diseases, as well as other hematologic disorders and retinal degenerative conditions. Spark also advises select gene therapy companies with similar interests in severe medical conditions. The company plans to price 5.5 million shares at $15 to $17 each on Thursday evening to trade Friday morning on the NASDAQ Global Market.
(For more information, please click here: Spark Therapeutics)
Flex Pharma (FLKS – proposed) is a Boston-based biotechnology company that is developing innovative and proprietary treatments for nocturnal leg cramps and spasms associated with severe neuromuscular conditions. The company believes that activation of certain receptors in primary sensory neurons reduces the repetitive firing of alpha-motor neurons, thereby preventing or reducing the frequency and intensity of muscle cramps and spasms. In addition, Flex believes that it is the only company developing products based on this mechanism of muscle cramp inhibition. The company plans to price 4.6 million shares at $12 to $14 each on Wednesday evening to trade Thursday morning on the NASDAQ Global Market.
(For more information, please click here: Flex Pharma)
There are eight other stories from this week’s calendar, all from the biotech/biopharma sector.
Looking into next week, the calendar has five IPOs and all are from the biotech/biopharma sector. But more names could pop onto the IPO launching pad by the time that Monday, Feb. 2, rolls around.
Stay tuned.
Disclosure: Neither the author nor anyone else on the staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and staff do not issue advice, recommendations or opinions.