As the last days of August play out, the IPO calendar’s accent is on energy. There are two names on tap for this week and then it’s off for the rest of the summer.
Actually, there are three names on this week’s calendar – two from the energy sector and a biotech whose shares can be bought on the NASDAQ Copenhagen A/S. Its stock has been traded in Denmark since 2010.
The energy names are Contura Energy (CTRA – proposed) and Ranger Energy Services (RNGR – proposed)- and the other deal is Zealand Pharma A/S (ZEAL.CO). Collectively, bankers expect these deals to raise $310 million.
The magic word “energy” turned a few heads on Wall Street in the past couple of days. West Texas Intermediate (WTI) crude oil closed Friday, Aug. 4, 2017, at $49.52 a barrel, up 13.2 percent from $43.74, its recent low on May 5, but still down 9.1 percent from its recent high of $54.45 on Feb. 23. It’s worth noting, though, that the energy sector is subdivided into various groups such as exploration and production (E&P), oil and gas well supplies and servicing, and coal. The latter two are represented on this week’s calendar.
Coke, Steel and Coal
Contura Energy, based in Bristol, Tennessee, is a large-scale, diversified provider of met (metallurgical) coal and steam coal to a global customer base. Met coal, also known as coking coal, is a crucial ingredient used to make steel. Contura Energy operates coal mines across three major U.S. coal basins. The company runs six mining complexes, which include nine underground mines, four surface mines and four coal-preparation plants.
For the year to date, two coal IPOs have been priced. One has done well, the other hasn’t. Warrior Met Coal (HCC) priced its IPO of 16.7 million shares at $19 each on April 12, 2017. It closed Friday, Aug. 4, at $24.04, UP 26.5 percent from its IPO price. Ramaco Resources (METC) priced its IPO of 6 million shares at $13.50 each on Feb. 2. It closed Friday, Aug. 4, at $7.10, DOWN 47.4 percent from its IPO.
Rigs Around the Clock
Ranger Energy Services, based in Houston, believes it is one of the largest independent providers of high-spec well service rigs and associated services in the United States. The company has a fleet of 68 well service rigs that are among the newest and most advanced in the industry. Ranger Energy operates in most of the active oil and natural gas basins in the United States, including the Permian Basin, the Denver-Julesburg Basin, the Bakken Shale and the Eagle Ford Shale, the prospectus says.
For the year to date, one oil and gas supply IPO has been priced. It has done well. NCS Multistage Holdings (NCSM) priced its IPO of 9.5 million shares at $17 each on April 27, 2017. It closed Friday, Aug. 4, at $21.72, UP 27.8 percent from its IPO price.
Zealand Pharma A/S, based in Glostrup, Denmark, is a biotechnology company focused on the discovery, design and development of innovative peptide-based medicines. The company has two approved products to treat Type 2 diabetes.
Note: The company’s shares have been listed for trading on Nasdaq Copenhagen since November 2010.
(For more information about these companies, please check the IPO profiles found on IPOScoop.com’s website.)
Reaching Deeper into August
This takes us to the week of Aug. 14 – and the calendar is as clean as the pink sands of Bermuda. But a lot could happen when the SEC’s filing window opens again on Monday morning.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinion.