Wall Street is looking to price two deals this week. Bankers aim to raise $68 million. That is not a misprint. With projected proceeds in that range, it’s like the IPO market is whispering after a week in which it let out almost a $2 billion roar.
This week’s calendar calls for a Dutch auction, which is a carryover from last week, and a small-cap biotech offering. The biotech company’s shares are expected to trade on the OTC Bulletin Board.
Let’s roll the drums for this week’s traffic.
California Wine
Truett-Hurst (THST – proposed) is the Dutch auction offering. The company is a Healdsburg, California-based winery. It plans to offer 2.9 million shares at $11 to $15 each. It is unclear when the deal will start trading.
Note: Truett-Hurst won’t be the first winery to go public using the Dutch auction system. Back on April 8, 1999, RavensWood Winery offered 1 million shares at $10.50 each and closed its opening day at $10.875 per share. Fast forward to July 2001: The company merged with Constellation Brands and the RavensWood shareholders received $29.50 per share – and it was in cash.
New Face at the IPO Window
ADMA Biologics, a Hackensack, New Jersey-based biotech company, plans to offer 2.1 million shares at $13.50 to $15.50 each. The IPO is expected to be priced on Tuesday evening and to trade on the OTC Bulletin Board on Wednesday morning under a symbol as yet to be determined.
ADMA is specialty immune globulin company that is developing plasma-based biologics to treat and prevent certain infectious diseases, especially in patients with deficient or absent immune systems.
Hit Rewind, Please
Let’s take a look at last week’s passing parade.
Three IPOs were priced above their original filing terms and did well. Three were priced below their original filing ranges and flopped, but one flopped and then popped.
The Pops
- Blackhawk Network Holdings (HANK) priced its IPO of 10 million shares at $23 each, above its filing range of 10 million shares at $20 to $22 each. The IPO opened on Friday morning at $25 and closed at $26.01 – UP 13.1 percent above its initial offering price.
- Fairway Group (FWM) priced its IPO of 13.7 million shares at $13 each, above its filing range of 13.7 million shares at $10 to $12 each. The IPO opened on Wednesday morning at $18, closed its opening day at $17.35, and closed on Friday at $18.69 – UP 43.8 percent above its initial offering price.
- SeaWorld Entertainment (SEAS) priced its IPO of 26 million shares at $27 each, above its filing range of 20 million shares at $24 to $27 each. The IPO opened on Friday morning at $30.52 and closed at $33.52 – UP 24.2 percent above its initial offering price. (No word, though, on what those SeaWorld penguins thought when they paraded across the New York Stock Exchange floor right ahead of Friday’s opening bell.)
The Flops
- Hannon Armstrong Sustainable Infrastructure Capital (HASI) priced its IPO of 13.3 million shares at $12.50 each, below its filing rnage of 13.3 million shares at $14 to $16 each. The IPO opened on Thursday morning at $11.60, closed its opening day at $11.40, and closed on Friday at $11.25, DOWN 10 percent from its initial offering price.
- Taminco (TAM) priced its IPO of 15.8 million shares at $15 each, below its filing range of 15.8 million shares at $18 to $20 each. The IPO opened on Thursday morning at $14.12, closed its opening day at $14.55, and closed on Friday at $14.80, DOWN 1.3 percent from its initial offering price.
The Fence Jumper
- Intelsat S.A. (I) priced its IPO of 19.3 million shares at $18 each, well below its filing range of 21.7 million shares at $21 to $25 each. The IPO opened on Thursday morning at $17 – down $1 per share from its offering price. It rallied and closed its opening day at $19.25 and closed Friday at $20.25 – UP 12.5 percent from its initial offering price.
Look Beyond the Rainbow
Even though this week’s IPO calendar is skeletal thin by recent standards, next week looks to be picking up. It already has four deals expecting to raise $1.6 billion.
Stay tuned.
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 opinions.