The IPO Buzz: A Quartet in a Quiet Week

This week opens with a federal holiday. The next afternoon, a religious holiday begins at sundown and closes down the following day. This makes for a quiet week on Wall Street. Nevertheless, four IPOs are set to make their debuts.

Monday is Columbus Day, when U.S. commercial banks will close for the celebration. On Tuesday, all who observe Yom Kippur, the Day of Atonement on the Jewish calendar, will leave the office early to get home or to the synagogue before the holiday begins at sundown. Yom Kippur will be observed through nightfall on Wednesday. So that leaves only Thursday and Friday as regular business days. But this week’s IPO calendar shows that the market is still humming along, even if it’s at a slower pace.

The IPO calendar has four deals. Bankers expect to raise over $1 billion. Scheduled are a “blank check” company focused on the healthcare sector; a solar power company in India; an independent oil and gas company and an oilfield services company that supplies hydraulic fracturing and other services to shale oil and gas producers. These companies are Avista Healthcare Public Acquisition (AHPAU – proposed); Azure Power Global (AZRE – proposed); Extraction Oil & Gas (XOG – proposed) and Mammoth Energy Services (TUSK – proposed).

Avista Healthcare Public Acquisition, based in New York City, is a “blank check” company set up in December 2015 by two of the founders and managing partners of Avista, a middle-market private equity firm “focused on control buyout and growth investments in the healthcare, communications and industrial sectors,” according to the prospectus. The company’s initial goal will be to acquire and operate a North American or European healthcare-related business, the prospectus says.

Bankers plan to offer 30 million shares of Avista Healthcare Public Acquisition at $10 each on Monday, Oct. 10, to trade Tuesday, Oct. 11, on NASDAQ.

Accent on Energy

Azure Power Global, based in New Delhi, India, sells solar power in India on long-term fixed-price contracts to its customers at prices that in many cases are at or below prevailing alternatives for these customers.

Bankers plan to offer 3.4 million shares of Azure Power at $21 to $23 each on Tuesday, Oct. 11, to trade Wednesday, Oct. 12, on the New York Stock Exchange.

Extraction Oil & Gas, based in Denver, is an independent oil and gas company focused on the acquisition, development and production of oil, natural gas and NGL reserves in the Rocky Mountains, primarily in the Wattenberg Field of the DJ Basin of Colorado. The Wattenberg Field has been producing since the 1970s. According to the prospectus, the Wattenberg Field is “a premier North American oil and natural gas basin characterized by high recoveries relative to drilling and completion costs, high initial production rates, long reserve life and multiple stacked producing horizons.”

Bankers plan to offer 33.3 million shares of Extraction Oil & Gas at $15 to $18 each on Tuesday, Oct. 11, to trade Wednesday, Oct. 12, on the NASDAQ.

Mammoth Energy Services, based in Oklahoma City, is an integrated growth-oriented oilfield services company. The company provides completion and production services, including hydraulic fracturing, as well as contract and directional drilling services and remote accommodation services primarily to companies engaged in the exploration and development of North American onshore unconventional sands and shale oil and natural gas reserves, commonly referred to as “unconventional resources.” Mammoth Energy’s facilities and service centers are located in six states – Ohio, Oklahoma, Wisconsin, Minnesota, West Virginia and Texas – as well as in Alberta, Canada.

Bankers plan to offer 7.75 million shares of Mammoth Energy at $15 to $18 each on Thursday, Oct. 13, to trade Friday, Oct. 14, on NASDAQ.

Looking into the week of Oct. 17, 2016, the calendar has three IPOs. But anything could happen when the U.S. Securities and Exchange Commission’s filing window reopens on Tuesday morning, which could set the stage for the following week.

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 opinion.