The IPO Buzz: IPO Opening Night

The first full week of September features opening night for the IPO market. Despite the stock market’s pullback on Friday with the Dow Jones Industrial Average dropping 394.46 points, the show must go on: Bankers plan to price four IPOs this week – all on Thursday night – with expectations to start trading on Friday morning. Another three IPOs are planned for the following week, and there’s no telling what’s on the playbill beyond that.

Flipping back to a year ago, the September 2015 IPO calendar generated two deals in the first full week, three IPOs in the second week, and then ran out of gas. Stick around. Things could get fun.

The four names on this week’s IPO calendar are The Bank of N. T. Butterfield (NTB – proposed), Everbridge (EVBG – proposed), FB Financial (FBK – proposed) and Noble Midstream Partners (NBLX – proposed).

Bermuda Bank on the Big Board

The Bank of N.T. Butterfield & Son Ltd., a Hamilton, Bermuda-based bank whose stock is traded on the Bermuda Stock Exchange under the symbol “NTB.BH,” is set to sell common stock in the United States this week (proposed symbol NTB on the NYSE).

Bankers plan to offer 10.6 million shares at $22 to $25 each on Thursday, Sept. 15, to trade Friday, Sept. 16, 2016. Note: The issuer is offering about 5.96 million shares and selling shareholders are offering about 4.68 million shares.

Software Apps for Public Safety

Everbridge is a Burlington, Massachusetts-based software company that provides critical communications and enterprise safety applications, which let customers automate and accelerate the process of keeping people safe and businesses running during critical events. Those situations include public safety threats, terrorist attacks or severe weather conditions, as well as critical business events such as IT outages or cyber incidents.   

Bankers plan to offer 7.5 million shares at $11 to $13 each on Thursday, Sept. 15, to trade Friday, Sept. 16, 2016. Note: The issuer is offering 6.25 million shares and selling shareholders are offering about 1.25 million shares.

A Bank with Tennessee Roots

FB Financial, based in Nashville, is a bank holding company. Its wholly owned bank subsidiary, FirstBank, is the third-largest bank headquartered in Tennessee. FirstBank provides a comprehensive suite of commercial and consumer banking services to clients in select markets in Tennessee, North Alabama and North Georgia. The company says: “Our footprint includes 45 full-service bank branches serving the metropolitan markets of Nashville, Chattanooga, Knoxville, Memphis, Jackson and Huntsville (AL) in addition to 12 community markets.”

Bankers plan to offer 5.88 million shares at $16 to $18 each on Thursday, Sept. 15, to trade Friday, Sept. 16, 2016.

A Texas Yield Play

Noble Midstream Partners, based in Houston, is a Delaware master limited partnership formed by its sponsor, Noble Energy, to own, operate, develop and acquire a wide range of domestic midstream infrastructure assets. The company, in its prospectus, says: “We currently provide crude oil, natural gas and water-related midstream services for Noble through long-term, fixed-fee contracts. Our operating assets are currently focused in the Denver-Julesburg Basin, or DJ Basin, in Colorado, one of the premier liquid hydrocarbon basins in the United States.”

According to the prospectus: “Our principal business objectives are to generate stable cash flows and increase the quarterly cash distributions that we pay to our unitholders over time while ensuring the ongoing stability of our business by providing outstanding service to our upstream customers.” 

The company plans on offering a minimum quarterly distribution of 37.5 cents per unit for each whole quarter, or $1.50 per unit on an annualized basis, to yield 7.5 percent at the mid-point of its proposed price range.

Bankers plan to offer 12.5 million common units at $19 to $21 each on Thursday, Sept. 15, to trade Friday, Sept. 16, 2016.

Looking into the week of Sept. 19, the calendar has three IPOs. But anything could happen on Monday 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.